Question

What are Agglomeration economies? ​

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:

ᴀɢɢʟᴏᴍᴇʀᴀᴛɪᴏɴ ᴇᴄᴏɴᴏᴍɪᴇs

Many industries tend to come together to make, use of the advantages offered by the urban institutions such as banking, insurance, transport, labour. This is known as Agglomeration economies.

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