Agglomeration economies reflect cost savings resulting from the clustering of economic activities.

Question

Quizplus · Accepted Answer

Agglomeration economies refer to the benefits that firms can obtain by being located near each other in a cluster, such as lower costs for transportation, shared infrastructure, and access to a larger pool of skilled labor. Thus, agglomeration economies do reflect cost savings resulting from the clustering of economic activities.

Agglomeration Economies Reflect Cost Savings Resulting from the Clustering of Economic