Which statement about a cluster approach is correct?

• A. Units operate independently with no shared facilities
• B. Clusters require no defined geography
• C. Units within a cluster do not share infrastructure
• D. A defined geographic area hosts multiple units co-locating and sharing infrastructure

Answer: (D)

The main concept tested is that a cluster approach means several units are located within a defined geographic area and share infrastructure. This setup isn’t about units operating in isolation or lacking a shared space; it’s about co-location and the use of common facilities to improve efficiency and reduce costs. When multiple units are in one area, they can share essential infrastructure like power, water, common effluent treatment, storage, testing facilities, and logistics services. Proximity also enables streamlined supply chains, easier access to inputs and markets, and opportunities for specialized service providers to support several nearby units.

In contrast, statements that describe independent operation, absence of defined geography, or lack of shared infrastructure contradict how a cluster is designed to function.