___________________________ says that firms in an industry tend to locate in the same areas because of positive externalities.
A)Industry Agglomeration Theory
B)Industry Cluster Theory
C)Externality Theory
D)Economic Development Theory

Question

Quizplus · Accepted Answer

Industry Agglomeration Theory explains that firms in the same industry tend to locate in the same areas because of positive externalities such as shared specialized labor, infrastructure, knowledge spillovers, and easier access to suppliers and markets.

___________________________ Says That Firms in an Industry Tend to Locate