Question

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

Answer 1

Answer:

Economies of agglomeration oragglomeration effects are cost savings arising from urban agglomeration, a major topic of urban economics. ... It is the tension betweeneconomies and diseconomies that allows cities to grow but keeps them from becoming too large.

Answer 2

Answer:

1.) Economies of agglomeration or agglomeration effects are cost savings arising from urban agglomeration, a major topic of urban economics.

2.) 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.