Why Is Northern Mexico Used as a Cluster for Electronics

question 42

Multiple Choice

Why is Northern Mexico used as a cluster for electronics firms?

• A)high traffic flows
• B)venture capitalists located nearby
• C)natural resources of land and climate
• D)NAFTA
• E)high per capita GDP

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Definitions:

Diseconomies of Scale

The phenomenon when a company or business grows so large that the costs per unit increase, leading to inefficiency.

Long-Run

A time period in economics where all inputs are variable, allowing firms to adjust all factors of production.

Average Cost Curve

A graph showing the cost per unit of output produced, calculated by dividing total costs by the quantity of output.

U‐Shaped

The U-shaped concept typically refers to a relationship where variables initially decrease, reach a lowest point, and then increase, forming a graph that resembles a U shape.