Why Do Stores Cluster Together

question 98

Multiple Choice

Why do stores cluster together?

• A) To decrease competition
• B) To increase their customer pulling power
• C) To take advantage of tax breaks
• D) To create retailer cooperatives
• E) To standardize the service mix

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Definitions:

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.

Command Economy

An economy in which a central government either directly or indirectly sets output targets, incomes, and prices.

Labor

Labor describes the human exertion (whether physical or mental) that is applied to the production of goods and services.

Capital

Assets used for the production of goods and services, such as machinery, buildings, and equipment.