Question

14. What economic fact can best explain the clustering of some industries, such as banking and...

14. What economic fact can best explain the clustering of some industries, such as banking and finance in New York City and high-technology computer production in Silicon Valley?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Clustering of industries at one place leads to development of infrastructure required for firm of these industries at the cluster area. This enable firms to lower their cost of operation by utilizing this shared infrastructure.

This benefit to firm due to clustering of industries at one place is referred to as external economies of scale.

So,

The economic fact that can best explain the clustering of some industries, such as banking and finance in the New York City and high technology computer production in Silicon valley is external economies of scale.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Can the Boomer Technology Circles be applied to othe industries? What are some of the risks...
Can the Boomer Technology Circles be applied to othe industries? What are some of the risks in pursuing this strategy?
Firms at best can only enjoy temporary periods of positive economic profits. Eventually, however, new companies...
Firms at best can only enjoy temporary periods of positive economic profits. Eventually, however, new companies will compete these profits away while driving prices down and increasing both employment and investment. This, so it goes, is the theory of Adam Smith’s invisible hand. And yet, today profitable American firms have an 80% chance of being that way 10 years later. Thirty years ago, companies who were profitable only had a 50% chance of being that way 10 years later. (a)...
43. What determines the economic value of commodities? A. The claim on a future stream of...
43. What determines the economic value of commodities? A. The claim on a future stream of cash flows B. The ability to be consumed or transformed over the course of take production cycle C. Whether the commodities are trading in backwardation or contango D. The clearinghouse, based on the aggregate valuation of expiring futures contracts 44. Which of the following statements apply more to buyout funds than to venture capital funds? A. Their valuation risk is high because heroic assumptions...
15-6. Alumco Industries must install $1 million of new computer equipment in its Ontario plant. It...
15-6. Alumco Industries must install $1 million of new computer equipment in its Ontario plant. It can obtain a bank loan for 100% of the required amount. Alternatively, Alumco believe3ns that it can arrange for a lease financing plan. Assume that these facts apply: (1) The computer equipment falls into asset Class 45 with a declining balance CCA rate of 45%. (2) Estimated maintenance expenses are $50,000 per year. (3) The firm's tax rate is 34%. (4) If the money...
Read the NY Fed's section and write a memo summarizing the details of the report. Summary...
Read the NY Fed's section and write a memo summarizing the details of the report. Summary of Economic Activity Economic activity in the Second District continued to grow at a moderate pace in the latest reporting period, and the labor market has remained tight. Input prices increased at a slightly faster pace, while selling prices continued to rise modestly. Fairly robust growth was reported in most service and distribution industries. Manufacturers reported that growth has slowed somewhat from its rapid...
7. What can you conclude regarding consumer’s willingness to pay for Super Bowl tickets in general...
7. What can you conclude regarding consumer’s willingness to pay for Super Bowl tickets in general and particularly when it’s a location like NYC? Use evidence from the passage to support your answer. Further evidence that teams leave gate revenue on the table (or in economic parlance, create consumer surplus for fans) from charging lower face prices than they otherwise could command can be found by looking at secondary ticket pricing. Especially in the NFL which has the greatest scarcity...
How failing power utility is fuelling South Africa’s economic crisis South Africa’s state power utility Eskom...
How failing power utility is fuelling South Africa’s economic crisis South Africa’s state power utility Eskom is the biggest challenge facing the country. Mess up Eskom, and you mess up the country. In addition, it looks as though key players are doing just that. The past two weeks will be remembered as the start of a cataclysmic economic crisis caused by the failure of three powerful men to spend enough time in a room to find a comprehensive solution that...
Case 3: Bank of America: “Keep the Change” Service Design What is best practice in service...
Case 3: Bank of America: “Keep the Change” Service Design What is best practice in service development? It is very similar to product development as the following combination financial product/service project illustrates. The goal of this service development project was to get debit-card holders to open savings accounts. In the spring of 2004, a team of Bank of America researchers and consultants spent two months observing a dozen boomer-age women and their families when they shopped, balanced their checkbooks, and...
Which of the following is not a common element of successful strategies? Clear, consistent and long-term...
Which of the following is not a common element of successful strategies? Clear, consistent and long-term goals Profound understanding of the natural environment Objective appraisal of resources Effective implementation 2. Patagonia’s mission statement of ‘Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis’ can be used as an example of which of the following reasons why firms need strategy: Strategy as a decision support Strategy as a target Strategy as...
1. Explain and give examples of the 5 existing business model patterns. 2. Can the business...
1. Explain and give examples of the 5 existing business model patterns. 2. Can the business below use that business model pattern? Explain. Overview- We are going to start a bakery business as I have my interest in bakery. This is going to be start-up business plan. The name of our Bakery would be “Bake It or Make It”. It would be managed by me along with my team of new bakers around the city. Opening a bakery at initial...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT