Which of the following is NOT a reason for the absence of...
Which of the following is NOT a reason for the absence of an industry in the rural areas?
Absence of financial institution
Restricted market
Inadequate power and water supply
Inadequate transportation
Presence of external economies
Correct answer is E
External economies of scale are business-enhancing factors that happen outside a company but within the same industry. It has to do with the availability of skilled labor, banking facilities, transportation, communication, etc within a company.
Option E is the correct option because rural areas lack most of the things that make up a company's external economies of scale.
The reward to land as a factor of production is ...
A characteristic of the linear production function is that ...
International trade is different from internal trade because of the ...
The effect of emigration on a country's population, all other things remaining equal, is to ...
Who controls a limited liability company? ...
Trades among nations is desirable because ...
The loans from the World Bank to developing countries are mainly to support ...
Commodity market can best be described as a market in which ...