Question

Key definition:

the four types of agglomeration economics

Resources Vs Market oriented firms

central park theory

labor pooling

urban utility curve

Answer 1

For companies that cluster, agglomeration economies produce relatively low production costs. Large concentrations are created by the price benefits of clustering of the work.

Four types:

1. Sharing intermediate input producers

2. Tapping a common labor pool

3. Improving skills matching

4. Sharing knowledge

Resource-oriented companies are those that have a relatively high cost of manufacturing their items for transport. An example would be the natural gas industry.

Market orientation is a business approach that prioritises the recognition of consumers' needs and preferences and the development of goods and services that fulfil them.

Labour Pooling us the source of qualified people that employees can be recruited from. A social class composed of those who do manual labour or work for wages

The Urban Utility Curve is the positive result of a rise in the workforce of a city. An rise in total jobs creates two kinds of economies of agglomeration that provide upward pressure on the utility of employees.