This question was unpopular with the candidates. Most of the candidates did not attempt this question. However, those who attempted it scored below average marks because they failed to give the following answers:
(a) External economies of scale are cost saving benefits enjoyed when firms in the same or similar industries are concentrated in a particular area.
(b) (i) pool of skilled workers;
(ii) joint services;
(iii) training schools;
(iv) joint research;
(v) existence of subsidiary firms.
(c) (i) extent of market;
(ii) nature of the business;
- inadequate capital;
- level of entrepreneurial skill.
