4. Which of the following are correct?
A. The exchange of ideas within firms is more important than the
sharing of knowledge between people in
different firms, so must also be more important for urban
agglomeration.
B. Large cities can be expected to have a smaller number of
occupational job titles because the opportunities
for exploiting increasing returns to scale are greater there.
C. Rents are higher in large cities, so firms need to economize on
space and do so by limiting the number
of different goods available. As a result, consumers and firms
should find the selection to be more limited in large cities.
D. None of the above.
4. Which of the following are correct? A. The exchange of ideas within firms is more important than the sharing of knowl
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