Question

What is agglomeration economics ? 3 marks.

Answer 1

Economies of agglomeration

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

Explanation:

$\huge\green{QUESTION}$

What is Agglomeration economy?

$\huge\blue{ANSWER}$

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 reductions and gains in efficiency that result from this proximity

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