The idea behind clustering is that:
A) each part of a network generally operates better in isolation, and if governments reduce regulation, firms should realize large gains in productivity.
B) too many firms in the same network cuts down on profits, so if governments can subsidize the most profitable businesses, they should realize large gains in productivity.
C) each part of a network is far less productive operating in isolation, so if governments can push each element of the network together, they should realize large gains in productivity.
D) many parts of a network don't have the technical expertise required to realize large gains in technology, so the government should provide technical resources to help these networks develop.

Question

Quizplus · Accepted Answer

Clustering is the idea that each part of a network is far less productive operating in isolation. Instead, by bringing together elements of a network, economies of scale and specialization can be achieved, leading to greater productivity and competitiveness. Therefore, governments can push each element of the network together to realize large gains in productivity.

The Idea Behind Clustering Is That