What is the BEST explanation as to why businesses in competition with each other may want to be in close physical proximity in certain circumstances?

Question

(1 point)
Responses

to stave off decline in the business life cycle

to stave off decline in the business life cycle

to lower cost structure

to lower cost structure

to allow competitors to increase profits

to allow competitors to increase profits

to make it a destination for customers

Answer 1

The BEST explanation as to why businesses in competition with each other may want to be in close physical proximity in certain circumstances is:

to make it a destination for customers.

When businesses are located near each other, they can attract more customers to the area, leading to increased foot traffic and greater overall sales for all businesses involved. This clustering can create a competitive advantage by establishing the area as a shopping or service destination.