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JAMB Economics 1989 Question 27

Question 27

Industrialisation

Industries that can be randomly located are characterized by

  1. A.relatively low transport cost for both raw materials and output and factor mobility
  2. B.relatively heavy transport cost for raw material or output
  3. C.constant returns to scale
  4. D.significant economy of scale.
Show the answer and explanation

Answer: A (relatively low transport cost for both raw materials and output and factor mobility)

Explanation

If transport costs are low and factors can move freely, location makes little difference, so such 'footloose' industries can be sited almost anywhere.