One of the reasons for the existence of agglomeration, Microeconomics

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One of the reasons for the existence of agglomeration

One of the reasons for the existence of agglomeration economies is scale economies in intermediate inputs. Answer the following.

(a) What are the 3 conditions that are required for the emergence of agglomeration economies from the sharing of input suppliers?

(b) Explain this source of agglomeration economies using each of the following as an example.

1. The New York dressmaking industry

2. High technology firms

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Microeconomics: One of the reasons for the existence of agglomeration

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Microeconomics: One of the reasons for the existence of agglomeration

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