The benefits firms reap by locating in close geographical proximity to each other are known collectively as _____.
A) agglomeration economies
B) incubator economies
C) virtual economies
D) shadow economies

Question

Quizplus · Accepted Answer

Agglomeration economies refer to the benefits that firms gain by being located in close proximity to each other. These benefits include access to a larger labor market, easier access to suppliers and customers, knowledge spillovers, and lower transportation costs.

The Benefits Firms Reap by Locating in Close Geographical Proximity