Which of the following statements is true of clustering?
A)It uses different suppliers and distribution channels for interdependent companies within an industry.
B)It helps a firm gain an increase in efficiencies.
C)It seldom uses specialized labor.
D)It typically increases the costs of production and distribution.

Question

Quizplus · Accepted Answer

Clustering involves grouping together interdependent companies within an industry to gain advantages in efficiency, collaboration, and innovation. This can result in cost savings and increased competitiveness for the firms involved. Therefore, option B is the correct choice. The other options are not accurate descriptions of clustering.

Which of the Following Statements Is True of Clustering