Question on: JAMB Economics - 2018

Concentrating industries in one place leads to several benefits, primarily related to **external economies of scale**. These economies arise from the growth of an industry within a specific area. Here's why: * **External Economies:** These benefits accrue to all firms within an industry due to the industry's growth. Examples include: * **Specialized labor pool:** A concentration of firms attracts workers with specific skills. * **Improved infrastructure:** Local government may invest in better infrastructure (roads, transport, etc.) * **Supporting industries:** Suppliers and service providers locate nearby, reducing costs and improving efficiency. * **Other Options:** * **A. Cost economies:** This is too general, could apply to several different areas. * **B. Economies of