1. The following statements are related to city formation. Place them in chronological order starting with what comes first. A. Competition for good accessible locations create differences in land prices. B. Companies such as specialty vegan stores are introduced into the clustering firms. C. Economies of scale cause firms to group. D. There are differences in population density. (1) C. D. B. A (2) C. A. D. B (3) A. D. C. B (4) D. A. B. C 2. Which of the following statements explain the benefits associated with the clustering of firms? A. A firm is now able to purchase specialized inputs more cheaply than it can produce them internally. B. A firm will now have access to a pool of skilled labour that is not available elsewhere. C. A firm is now able to acquire valuable information from other firms regarding marketing practices, D. A firm is now able to acquire valuable information from other firms regarding technical innovations. (1) A and Conly (2) A, B, and D only (3) B and D only (4) All of the above 3. The demand for products from Alexander's Pastry Shop has sky-rocketed in the last few months and Alexander is making more than he ever has before. His shop is located in a town called Ashcroft. He has finally saved enough money to move his shop to a new city, Kelowna, where he expects his shop will make even more money. Unfortunately, after being in business in Kelowna for three months, he goes bankrupt. Alexander says, "there just isn't a large enough industry for hand-baked goods in Kelowna. It costs me an arm and a leg to purchase any of my baking materials. In Ashcroft, where there is a large flour mill and many packaging companies, the cost of my inputs are much cheaper." What type of scale economies are at work for Alexander in Ashcroft? (1) Urbanization economies (2) Localization economies (3) Positive economies of scale (4) Negative economies of scale