When companies form a technology cluster it often results in:
A) the loss of agglomeration economies.
B) new firms being discouraged to start up in the immediate vicinity.
C) reduced interaction and trust between them.
D) reduced pricing power in their relationships with buyers and suppliers.

Question

Quizplus · Accepted Answer

When companies form a technology cluster, it often results in reduced pricing power in their relationships with buyers and suppliers. This is because increased competition and transparency within the cluster can lead to a reduction in bargaining power for individual companies. However, the formation of technology clusters can also lead to numerous other benefits, such as increased knowledge sharing and innovation, access to a skilled workforce, and reduced transaction costs.

When Companies Form a Technology Cluster It Often Results In