Lack of infrastructure facilities can affect the growth of medium scale industries negatively. Explain how?

Explanation:

Lack of infrastructure causes the cost of input in the medium scale industries to increase. For example, bad roads cause increased costs of transport and lack of cheaper electricity connectivity causes the industry to use expensive petroleum-based products for energy.  Therefore, the medium scale industries will be unable to competitively set the price of their products to compete with large scale industries. Large scale industries can maint low prices due to their ability to manufacture large volumes of products hence enjoying economies of scale

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