Clustering _____
A) occurs when government resources are diverted toward one particular sector of an economy.
B) takes place when new firms enter regions already thick with other firms in the same or similar industries.
C) occurs when there is a single firm in an economy that can charge different prices for the same product.
D) implies that consumers with similar tastes and preferences tend to stay in the same region.
E) occurs when all the firms in the industry sell identical commodities and charge identical prices for these commodities.

Question

Quizplus · Accepted Answer

Clustering refers to a concentration of firms in a particular location or region. This often occurs when new firms enter regions that already have other firms in the same or similar industries, creating a clustering effect.