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About Lecture Notes Lectures 3 Why Do Firms Cluster PDF
Firms cluster for several reasons: to share intermediate inputs, labor pools, and knowledge. When firms cluster, it creates localization economies that reduce costs. As more firms enter a cluster, profits increase until they level off at an optimal number of firms. Large cities also experience urbanization economies across industries as firms share infrastructure, services, and benefit from knowledge spillovers between sectors. Cities provide advantages like better employment opportunities for dual-career families, learning opportunities from a variety of role models, and greater chances for social interactions.
Detailed Information
| Author: | ['minlwinthein'] |
|---|---|
| Publication Year: | 2019 |
| Pages: | 4 |
| Language: | English |
| Format: | |
| Price: | FREE |
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