Cluster Analysis Is a Tool That

question 85

Multiple Choice

Cluster analysis is a tool that

• A) discovers trends, predicts future events, and assesses possible course of action.
• B) searches for exact relationships between variables.
• C) identifies groups of data that fall naturally together.
• D) None of these answer choices is correct.

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Definitions:

Monopolistically Competitive Industry

A market structure where many companies sell products that are substitutes but with distinctions in branding and quality, allowing firms some control over pricing.

Differentiated Products

Products that are distinguished from similar products by distinctive characteristics, such as quality, design, or brand.

Barriers to Entry

Factors that prevent or hinder companies from entering a particular market, such as high start-up costs, strict regulations, or strong competition.

Concentration Ratio

An economic indicator that measures the market share of the largest firms within an industry, used to assess competitiveness.