Many economic activities tend to cluster together in time because:
A) of cultural norms that tell us we are supposed to work during the day.
B) the returns to working are lower in the evening hours.
C) the returns to coordinating with others are high.
D) the opportunity cost is higher than when these activities are not clustered.

Question

Quizplus · Accepted Answer

Economic activities tend to cluster together in time because there are high returns to coordination with others. When multiple individuals or businesses coordinate their activities, they can benefit from increased efficiency and reduced transaction costs. For example, if a group of businesses all operate during the same hours, they can share resources like security services and heating/cooling systems. This leads to lower costs for each individual business and a more efficient use of resources overall.

Many Economic Activities Tend to Cluster Together in Time Because