Question

What are agglomeration economies?

• A. When more than one industry comes together in an urban centre
• B. When economies of two countries are pooled together
• C. When several economic schemes are in place
• D. When the economy is falling

Answer 1

The correct option is A When more than one industry comes together in an urban centre

Agglomeration economies refers to the benefits received by the firms and people when they come together to make use of the advantages offered by the urban cities that prove helpful to them.

For Example - Cities provide markets and also provide benefits such as banking, insurance, transport, labour, etc., to the industries. Many industries tend to come together to make use of the advantages offered by the urban centres known as agglomeration economies.