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

in an industrial area, the location of industries is particularly influenced by ?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Extent of the division of labour
  • B External economies
  • C Internal economies
  • D Nearness to financial institution
Correct Answer: Option B
Explanation:
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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