NECO Economics 2024 Objective — Question 30
Question 30 of 50 from the National Examinations Council (NECO) Economics 2024 Objective paper, with the correct answer and a full explanation.
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Locating firms in urban areas may A.
- A. A. reduce rural-urban migration
- B. B. ensure balanced development of rural areas
- C. C. make a firm enjoy the benefits of the existence of other firmsCorrect
- D. D. increase urban-rural migration
Explanation
When many firms are located in an urban centre, this may result in external economies of scale i.e the benefits enjoyed by a firm from another firm as a result of their relationships or closeness to each other in the same locality or industry.
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