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WAEC Economics 2017 Objective — Question 30

Question 30 of 50 from the West African Examinations Council (WAEC) Economics 2017 Objective paper, with the correct answer and a full explanation.

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In an industrial area, the location of industries is particularly influenced by

  • A. A. extent of the division of labour
  • B. B. external economies of scaleCorrect
  • C. C. internal economies
  • D. D. nearness to financial institution

Explanation

Location is industry is influenced by external economies of scale. External economies of scale are advantages which accrue to a firm for locating close to other related firms.

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