Question: 37
(Choose 1 answer)
Which of the following statements is NOT TRUE?
A. A localized industrial cluster improves efficiency because it limits the market size by only attracting local
firms and local suppliers.
B. A localized industrial cluster improves efficiency because it can bring together many firms that collectively
provide a large enough market to support a wide range of specialized suppliers.
C. A localized industrial cluster improves efficiency because it creates more competition, availability, and
affordability of key inputs from a network of specialized suppliers.
D. A localized industrial cluster improves efficiency because it frees individual producers from the expense of
developing capital equipment internally and by spreading the costs of development by using specialized
suppliers.
