The propensity for similar businesses to cluster in the same locality (e.g.IT companies in Silicon Valley,fashion houses in Milan)is evidence of the intensity of the competitive instincts that drive the owners of these businesses.

Question

Quizplus · Accepted Answer

This clustering is more accurately attributed to the benefits of agglomeration economies, where businesses in similar industries locate near each other to take advantage of shared resources, talent pools, and knowledge spillovers, rather than purely competitive instincts.

The Propensity for Similar Businesses to Cluster in the Same