When Firms Within Related Industries Cluster Together in Order to Lower

question 39

True/False

When firms within related industries cluster together in order to lower unit costs for all firms,this refers to industrial inertia.

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Definitions:

Revaluation

The process of adjusting the book value of a fixed asset or security to reflect its current market value.

Fair Value

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Business Combination

A transaction or event through which a company acquires control over one or more businesses.