Agglomeration effects
A) have limited the growth of the computer industry in Silicon Valley.
B) typically slow down regional economic development.
C) are a form of external economy.
D) occur when businesses are located near each other, but are not interdependent with each other.
E) include both A and B.

Question

Quizplus · Accepted Answer

Agglomeration effects are a form of external economy where businesses benefit from being located near each other due to shared access to resources, labor pools, and knowledge spillovers. It is a positive influence on regional economic development, and there is no evidence that it limits the growth of the computer industry in Silicon Valley.

Agglomeration Effects