Question

Memphis, TN, located along the Mississippi River, is home to St. Jude Children's Research Hospital. St. Jude employs hundreds of doctors, research technicians, and scientist in its mission to advance cures and means of prevention for pediatric catastrophic diseases through research and treatment. Suppose a pharmaceutical company opens an office in Memphis specifically to be close to St. Jude. Consider why Memphis would be an attractive location. The company is attracted by O transparency in production O inclusive institutional laws. the advantages of agglomeration. natural resources available in Memphis.

Answer 1

The reason for company's attractiveness to Memphis is to benefit from the Economies of agglomeration. These are the cost savings arising from firms in related business located close to each other and forming a business cluster to reap on network effects.

Correct Answer - C