Industries clustering in cities to share markets and services enjoy what are called:
- Joint sector venture
- Agglomeration economies
- Economies of scale effect
- Least cost location rule
Show answer and solution
Correct answer: B. Agglomeration economies
1. Cities give banking, transport and labour.
2. These are agglomeration economies.
3. Industrialisation and urbanisation go together.
_Source: syllabus Contemporary India II, Chapter 6, Manufacturing Industries._