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JAMB Economics 1998 Question 26

Question 26

Industrialisation

A factor that influences the location of a firm near its market is the

  1. A.transportation of bulky raw materials
  2. B.external economies
  3. C.high cost of transporting finished goods
  4. D.availability of skilled manpower.
Show the answer and explanation

Answer: C (high cost of transporting finished goods)

Explanation

When finished goods are bulky, fragile or perishable and costly to carry, firms locate near the market to save transport costs.