Question

2.Explain the development of agglomeration economies. (Write the answer in two complete
points).​

Answer 1

agglomeration economics existwhen production is cheaper because of clustering of economic activity.as a result of this clustering it is possible to establish the other businesses which may take advantage of these economics without joining any big organisations.

Answer 2

Answer:

1) Agglomeration economies exist when production is cheaper because of this clustering of economic activity.

2)As a result of this clustering it becomes possible to establish other businesses which may take advantage of these economies without joining any big organization.