Question

state two chief reason for agglomeration​

Answer 1

Explanation:

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.

As more firms in related fields of business cluster together, their costs of production may decline significantly firms have competing multiple suppliers; greater specialization and division of labor result.

Answer 2

Explanation:

The best known of these sources are those attributed to Marshall (1920): labor market pooling, input sharing, and knowledge spillovers. Evidence to date supports the presence of all three of these forces.

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