Economics of Agglomeration means the companies, industries and services are located in proximity to each other to reduce the cost and gain efficiency by locating together.
Example:
In my hometown GUNTUR there is a cloth market known as Annapurna Wholesale Cloth Market where we can see no. of shops which sell starting from saree to men's wear. Because of this customers can easily buy clothes and the sellers have similar expenses like labor charges for supply of clothes etc. and this will also reduce the cost for advertisements and promotions.They will have more revenue.
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