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SSC Geography QUESTION #6336
Question 1
Agglomeration economies in industrial location arise primarily from:
  • Concentration reducing per-unit costs through shared infrastructure and specialized services✔️
  • Government subsidies for clustered industries
  • Reduced environmental regulations in industrial zones
  • Access to larger consumer markets
Correct Answer Explanation
Agglomeration economies (external economies of scale) occur when firms cluster, reducing costs through: (1) shared infrastructure, (2) specialized input suppliers, (3) skilled labor pools, (4) knowledge spillovers. Firms benefit from proximity without formal coordination.