Question on: WAEC Economics - 2017
in an industrial area, the location of industries is particularly influenced by ?
A
extent of the division of labour
B
external economies
C
internal economies
D
nearness to financial institution
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Correct Option: B
External economies of scale imply that as the size of an industry grows larger or more clustered, the average costs of doing business within the industry fall. This may occur due to increased specialization or training of workers, faster innovation or shared supplier relationships.
Following are the types of external economies of scale
- Transportation and Communication
- Skilled Labour
- Facility of Workshop
- Helping Industry
- Research and Experiment
- Banking Facility
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