Economies of agglomeration:-
Similar types of companies or firms establish or operate there business in one specific area
Or specified location for attract the supplier and customer as well as .
Due to economies of agglomeration company can save their cost due to easily available resources and human power.
But if similar companies are not situated in same place then it will difficult for
Supplier to supply raw material and other resources at time and cost of
Production will increase and customer will also face difficulty.
So it’s called as diseconomies of agglomeration
Example biscuit factory like Parle Britannia and other similar firm are situated in Taratala.
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