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i. Explain how the combination of regional comparative advantage and scale economies in transportation combine to produce trading firms and market cities. ii. Cities

i. Explain how the combination of regional comparative advantage and scale economies in transportation combine to produce trading firms and market cities. ii. Cities attempt to attract firms by offering them subsidies. Explain 4 types of inducements. iii. According to the empirical studies, what effect do state and local taxes and public services have on location choices?

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