Which of the following is the best example of an agglomeration diseconomy operating on a college campus?
a. lower demand for older, high-rise dormitories with group bathroom facilities prompts reduced rates.
b. the student union is remodeled and expanded to increase business by reducing congestion and increasing its consumer-friendliness
c. the university constructs an athletic village to centralize the activities of student-athletes
d. the alumni association works to attract a record number of people participating in homecoming

A

Explanation:

Agglomeration  as an economic term used to refer to the phenomenon of firms being located close to one another. The term Agglomeration economies refers to benefits that firms in a number of different industries receive from population and infrastructure clusters.  Agglomeration Diseconomies refer to the economic inefficiencies that stem from agglomeration, such as high cost of living, shortage of biosphere reserves and corruption, among others.

Therefore, an example of an agglomeration diseconomy operating on a college campus is a lower demand for older, high-rise dormitories with group bathroom facilities which prompts reduced rates.

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