Economic activities tend to cluster in time because:
A) it pays to coordinate economic activities with those of others.
B) of the vertical LRAS curve.
C) of labor unions.
D) it is legally required.

Question

Quizplus · Accepted Answer

It pays to coordinate economic activities with those of others, as this can result in benefits such as economies of scale, reduced transaction costs, and increased access to resources and markets. Thus, economic activities tend to cluster in time to take advantage of these benefits. The other choices (B, C, and D) are not relevant or do not explain why economic activities tend to cluster in time.

Economic Activities Tend to Cluster in Time Because