Which of the Following Would Typically Be Considered a Downside

question 34

Multiple Choice

Which of the following would typically be considered a downside to geographical clustering?

• A) Firms may have to lower prices on their products because there are many local competitors serving the same market.
• B) Firms have to spend more on transportation costs for their inputs because suppliers are located far away.
• C) Firms in a region have lower net income because the tax rate in that region is very high.
• D) Firms may benefit by improvements in local infrastructure such as roads and utilities.

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Definitions:

Ventral Surface

The front or belly side of the body or an organ.

Caudal

Pertaining to the tail or the posterior part of the body in a given direction, opposite of cranial.

Cephalic

Relating to the head or the head end of the body.

Caudal

Relating to the tail or posterior part of the body.