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 a 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 for new entrants to have easier access to regional information about market trends, giving them a potential advantage in understanding customer needs and preferences. However, the other options do not necessarily apply to clustering and are not clear advantages.

Which of the Following Is an Advantage of Clustering