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External economies arises essentially from__________

Economics
JAMB 2019

External economies arises essentially from__________

  • A. a firm's individual policies
  • B. localisation of industry
  • C. government economic policy
  • D. free transferability of shares
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Correct Answer: Option B
Explanation

External economies are the benefits a firm derives from concentration or localisation of industries in a particular area or the benefits a firm enjoys from increase in its output and decrease in cost as a result of the kind of assistance it derives from other firms.

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