Question

_________ refers to the benefits when industries/firms cluster together resulting in reduced production cost, improved availability of skilled labor, and increased flow of information and knowledge sharing.

• A. Industrial ecology
• B. Agglomeration of economies
• C. Behavioural economics
• D. Industrial engineering

Hint:

Agglomeration economies play a critical role in urban development and industrial growth, as they help firms reduce costs and increase competitiveness by being in proximity to one another.

Answer 1

The Correct Option is B

The concept being described is known as the Agglomeration of economies. This occurs when industries or firms cluster together in a specific location, which results in several benefits including reduced production costs, better availability of skilled labor, and an increase in the flow of information and knowledge sharing. 

Thus, the correct answer is (B) Agglomeration of economies.