Industry clusters always cause part of the supply curve to be downward sloping.

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Industry clusters are characterized by a geographic concentration of interconnected businesses in a particular industry. This leads to a sharing of resources, infrastructure, and knowledge which can lead to cost savings and productivity improvements for the firms in the cluster. This can cause a downward sloping supply curve for the industry as a whole, as firms are able to produce more efficiently and at lower cost.

Industry Clusters Always Cause Part of the Supply Curve to Be