The Propensity for Similar Businesses to Cluster in the Same

question 37

True/False

The propensity for similar businesses to cluster in the same locality (e.g.IT companies in Silicon Valley,insurance companies in London)is evidence of the intensity of the competitive instincts that drive business owners.

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Definitions:

Bananas

A type of elongated, edible fruit produced by several kinds of large herbaceous flowering plants in the genus Musa.

Comparative Advantage

The ability of a country or firm to produce a particular good or service more efficiently than other goods or services, relative to other countries or firms.

Opportunity Cost

The sacrifice of potential advantages from different alternatives when opting for a particular one.

Production Cost

The total cost incurred by a firm in producing a specific quantity of a good or service, including both fixed and variable costs.