Step 1: Identify the main theme of the passage. The passage begins by discussing "agglomeration economies" and their differences across various habitation sizes (market towns, medium-sized cities, larger cities, and metropolitan city regions).
Step 2: Analyze the focus of the content. It repeatedly emphasizes how agglomeration economies function—through scale economies, localization, urbanisation, and networking—and their role in driving productivity, innovation, and economic growth in metropolitan regions. While other elements like population density and economic activities are mentioned, they are in the context of agglomeration economies.
Step 3: Match with the options. Option A (development of cities) is too broad, option B (population in metropolitan cities) is a minor detail, and option C (general activities in urban areas) is not the primary focus. Option D (agglomeration economies) directly aligns with the passage's core theme, as it explores their types, effects, and significance. Thus, the correct answer is D.