Economists refer to knowledge “spillovers” as externalities, and there

QUESTION

Economists refer to knowledge “spillovers” as externalities, and there is a well-established theory suggesting that firms can benefit from such externalities by locating close to their source.

Indicate whether the statement is true or false.

ANSWER

TRUE
Economists refer to knowledge “spillovers” as externalities, and there is a well-established theory suggesting that firms can benefit from such externalities by locating close to their source.