Question

25.) Write a note on agglomeration economy?​

Answer 1

Answer:

Economies of agglomeration or agglomeration effects are cost savings arising from urban agglomeration, a major topic of urban economics. One aspect of agglomeration is that firms are often located near to each other. This concept relates to the idea of economies of scale and network effects.

Answer 2

Answer:

Agglomeration: a localized economy in which a large number of companies, services and industries exist in close proximity to one another and benefit from the cost reduction and gain in efficiency the result from this proximity.