Economic Specialization: This term refers to when a city or region focuses on producing specific goods or services based on its available resources and expertise.
Economies of Scale: Economies of scale occur when the cost per unit decreases as production increases. In larger cities with diverse economic functions, businesses can benefit from economies of scale due to higher levels of production.
Agglomeration: Agglomeration describes the concentration of industries and businesses in one area. Larger cities often experience agglomeration due to their diverse economic functions attracting related industries.