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GATE 2025 AR — Planning – Question 52

Planning History, Theory and Techniques · Industrial location theories · 1 mark · Multiple choice

What describes benefits from firms clustering, including reduced costs, available skilled labour and knowledge exchange?

  1. Industrial ecology
  2. Agglomeration economies
  3. Behavioural economics
  4. Industrial engineering

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Show answer and explanation

Correct answer: (B) Agglomeration economies

Explanation

Agglomeration economies arise from spatial concentration, including shared labour pools, suppliers, infrastructure and information spillovers. Hence B. They are external benefits of clustering rather than the general analysis of behaviour or the engineering of production processes.