View Your World, a High- End Window Manufacturer, Directly Pays

question 24

Multiple Choice

View Your World, a high- end window manufacturer, directly pays all of the transaction costs. The managers of View Your World are considering the profit- maximizing location for their plant. If locating the plant closer to its customers saves $10,000 in transportation costs of its windows to its customers, but causes an additional $7,500 in input transportation costs, View Your World______ locate its plant closer to its customers as the marginal benefit is______ than the marginal cost.

• A)should not; more
• B)should; greater
• C)should not; less
• D)should; less

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Definitions:

Pegboard

A board with a grid of holes designed to organize tools, parts, or materials, often used in workshops or craft areas.

Cost-Ratio Analysis

Cost-ratio analysis is a method of comparing the cost of an action to its benefits, often used in business and economics to determine the most economically feasible option.

Cost-Benefit Analysis

An economic evaluation technique that compares the costs and benefits of different projects or decisions to ensure efficient allocation of resources.

Highest Denomination

The largest value in a series or system, such as currency.