Industries clustering in cities to share markets and services enjoy what are called:
AJoint sector venture
BAgglomeration economies
CEconomies of scale effect
DLeast cost location rule
Answer & 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._
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