Briefly Explain What the Term "Agglomeration Economies" Refers to and Briefly

question 6

Essay

Briefly explain what the term "agglomeration economies" refers to and briefly describe what the fundamental reason for the development of this particular type of economy relates to. Provide two examples of factors associated with agglomeration economies and identify what these factors help to explain. Identify two factors that would lead to diseconomies and briefly explain how the future of many of the world's cities will be likely be determined.

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Definitions:

Trend Analysis

A method used to analyze and track the movements or directions of data points, such as prices or sales over time, to forecast future trends.

Horizontal Analysis

A financial analysis method that compares historical financial data over a series of periods to identify trends and changes.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a series of periods to identify trends.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net profit or loss.