Clustering

question 29

Multiple Choice

Clustering:

• A)occurs when government resources are diverted toward one particular sector of the 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 the 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.

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Definitions:

Significant Component

An essential part or element of a larger system or structure in various contexts, crucial for its operation or understanding.

Vertical Analysis

A technique for analyzing financial statements where every item within the three key categories (assets, liabilities, and equity) on a balance sheet is expressed as a percentage of the total category value.

Administrative Expense

Expenses related to the general operation of a business, including salaries of non-sales personnel, rent, and utilities.

Net Sales

Net sales of a company, calculated by deducting returns, discounts, and allowances for damaged or missing products from its gross sales.