Question

What do you mean by agglomeration economies? And where are they found? Only genuine answers✅✅

Answer 1

Agglomeration economies or external economies of scale refers to the benefits from concentrating output and housing in particular areas. If an area specialises in the production of a certain type of good ,all firms can benefit from various factors such as good supply and trained works.

They are found in It setups to cluster in similar regions such as Silicon valley California and major cities like London.

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Answer 2

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Explanation:

Agglomeration economies are the benefits that come when firms and people locate near one another together in cities and industrial clusters.

Examples of agglomeration economies

IT setups tend to cluster in similar regions, such as Silicon Valley California, and major cities, like London. The reason is that these areas attract highly skilled IT personnel and it is easier to recruit the right staff. Also, the support infrastructure will surround the areas.