What is supplier economies and educational economies of scale in regards to external economies of scale? (section of my notes below, does not makes sense to me)

 

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Educational economies: local colleges will set up training schemes suited to the largest employers' needs, giving an available pool of skilled labour. This reduces recruitment and training costs for those businesses that make up the industry 31 | Page concerned. For example, there are many more IT courses at being offered at colleges as the whole IT industry in the UK has developed recently. This means firms can benefit from having a larger pool of appropriately skilled workers to recruit from. Educational economies: local colleges will set up training schemes suited to the largest employers' needs, giving an available pool of skilled labour. This reduces recruitment and training costs for those businesses that make up the industry 31 | Page concerned. For example, there are many more IT courses at being offered at colleges as the whole IT industry in the UK has developed recently. This means firms can benefit from having a larger pool of appropriately skilled workers to recruit from.

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Youre right the terms supplier economies and educational economies of scale dont typically appear together in the context of external economies of sca... View the full answer