Which of the Following Is an Advantage of Clustering

question 32

Multiple Choice

Which of the following is an advantage of clustering?

• A)New entrants can charge higher prices for products as compared to existing firms.
• B)New entrants can have lower cost of gathering regional information about trends in the market.
• C)New entrants can benefit from favorable terms of trade.
• D)New entrants can engage in non-price competition with other firms in the industry.
• E)New entrants can charge low prices for their products.

---

Definitions:

Trademarked Product

A product that is legally protected through registration of its brand name or logo, preventing unauthorized use by others.

Inventor's Individual Rights

Legal rights granted to an inventor to protect their invention and control its use.

Maximize Profits

The strategic goal of increasing an organization's net income to the highest possible level.

Revenue Generated

The total amount of income produced by the sale of goods or services related to a company's primary operations.