Clustering _____

question 40

Multiple Choice

Clustering _____

• A) occurs when government resources are diverted toward one particular sector of an economy.
• B) takes place when new firms enter regions already thick with other firms in the same or similar industries.
• C) occurs when there is a single firm in an economy that can charge different prices for the same product.
• D) implies that consumers with similar tastes and preferences tend to stay in the same region.
• E) occurs when all the firms in the industry sell identical commodities and charge identical prices for these commodities.

---

Definitions:

Market Price

represents the current price at which an asset or service can be bought or sold in a marketplace.

Bond's Yield

The annual return on a bond investment, calculated by dividing the annual interest payments by the bond's current market price.

Market Interest Rates

The prevailing rate at which borrowers and lenders agree to conduct transactions in the financial markets.

Market Value

The current price at which an asset or service can be bought or sold in a market.