Economists refer to knowledge "spillovers" that occur when companies in the same industry are located in the same area as:
A) technology flows.
B) overlaps.
C) corporate espionage.
D) externalities.
E) a free rider problem.

Question

Quizplus · Accepted Answer

Knowledge spillovers refer to the positive externalities that accrue to firms located in the same industry and geographical vicinity. The term "externalities" describes the positive effects that are not internalized by the individual firms, but are enjoyed by the industry as a whole.

Economists Refer to Knowledge "Spillovers" That Occur When Companies in the Same