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Consider an urban economy. For the firms in this economy, suppose you could observe its labor costs, capital costs, rents and output at two points

Consider an urban economy. For the firms in this economy, suppose you could observe its labor costs, capital costs, rents and output at two points in time. What evidence would lead you to conclude that there were "economies of agglomeration" for firms or industries in the region? Define clearly what you mean by "economies of agglomeration" and be specific about the evidence that would support your conclusion.

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