These are the advantages enjoyed by group of firms ( industry as a whole) due to expansion of the scale of production. In other words they are advantages enjoyed due to localization of firms in the industry i.e concentration of firms in an area.

Information economies - firms in one area may cooperate and foster the establishment of associations which are jointly used to provide information for economic improvement to the firms.

External technical economies- Localized firms may share specialized equipment and maintenance facilities like workshops and garages, hence reducing costs of individual firms by sharing out such costs.

Concentration economies - economies of concentration arise where localized firms share training facilities, transport and other infrastructure facilities. All this results into reduced costs of production in each firm due to cost sharing.

External financial economies- firms cooperation closely .as an industry may attract new financial instructions such as banks, insurance companies and building societies financial institutions will be established in the area of localization of firms to provide  less cost services to the firms.

External research economies-firms as an industry have enough resource, to carry out research into various areas of production. By sharing research services and facilities the cost per unit of each firm on research reduces.

Power economies- Firms concentrated in one area share power lines and power maintenance costs. This may increase output and reduce costs in the industry as a whole.

Advertising economies - Firms may combine to advertise their products hence sharing the costs of advertising their products. Also the reputation of the entire industry may reduce the need for advertising hence reducing per unit costs of production.

Manpower economies- Firms in an area may share on a pool of specialized skilled labour, reducing the firms' costs on labour.

Economies of specialization:- Each firm in the area may specialize in the production of a particular commodity which increases its efficiency, increases its output and reduces its average costs.