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Get access to the detailed solutions to the previous years questions asked in CMAT exam.
In the second paragraph, the author mentions, "Contrary to common belief, fewer than 10 percent of urban dwellers are residents of megacities with populations of over ten million." After this, he/she goes on to list some of the megacities and their populations.
Hence, we can infer that megacities are classified on the basis of their population.