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Does constitute argument against geographical concentration

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In our discussion of labor market pooling, we stressed the advantages of having two ?rms in the same location: If one ?rm is expanding while the other is contracting, it's to the advantage of both workers and ?rms that they be able to draw on a single labor pool. But it might happen that both ?rms want to expand or contract at the same time. Does this constitute an argument against geographical concentration? (Think through the numerical example carefully.)

Reference no: EM13868631

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