JAMB Economics 2019 Objective — Question 18
Question 18 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2019 Objective paper, with the correct answer and a full explanation.
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External economies refer to
- A. the benefit firms enjoy when industries concentrate in one placeCorrect
- B. internal cost savings from expanding a single firm
- C. government subsidies to industries
- D. reduced competition among firms
Explanation
External economies refer to the benefit that firms enjoy as a result of industries concentrating in one location (e.g. shared infrastructure, skilled labour pool).
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