Why is it cheaper to make carpets in Dalton, Georgia, than anywhere else in the United States?
A) Dalton has excellent carpet-making weather.
B) Dalton residents are genetically superior carpet weavers.
C) By historical accident, a number of carpet-related firms clustered in Dalton, so inputs are cheaper there than elsewhere.
D) The government in Dalton subsidizes carpet making.

Question

Quizplus · Accepted Answer

By historical accident, a number of carpet-related firms clustered in Dalton, so inputs are cheaper there than elsewhere. This means that the cost of materials and other inputs for carpet-making is lower in Dalton, so the overall cost of producing carpets is cheaper than in other parts of the United States. This clustering of firms is known as an agglomeration economy or industrial cluster, which can lead to cost savings and other benefits for firms in the area.

Why Is It Cheaper to Make Carpets in Dalton, Georgia