Which of the following is an advantage of clustering?
A)New entrants can charge higher prices for products as compared to existing firms.
B)New entrants can have lower cost of gathering regional information about trends in the market.
C)New entrants can benefit from favorable terms of trade.
D)New entrants can engage in non-price competition with other firms in the industry.
E)New entrants can charge low prices for their products.

Question

Quizplus · Accepted Answer

Clustering allows new entrants to gather regional information about market trends more easily and at a lower cost than if they were scattered throughout different regions. This can provide a competitive advantage and help them develop more targeted marketing and product strategies. The other options do not necessarily relate to the advantages of clustering.

Which of the Following Is an Advantage of Clustering