If Temper Company, a Manufacturer of Mattresses, Was Considering Moving

question 22

Multiple Choice

If Temper Company, a manufacturer of mattresses, was considering moving its production facilities to China but decided against it because the additional costs of shipping the mattresses back to the U.S. would offset the cost savings associated with moving the production facilities, the increased costs associated with shipping would be an example of

• A) learning-curve economies.
• B) diseconomies of scale.
• C) economies of scale.
• D) competitive advantages.

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Definitions:

Taste Buds

Sensory organs located on the tongue, which allow for the perception of taste, including sweet, sour, bitter, salty, and umami.

Spicy

Characterized by or having a strong, sharp taste or smell that is often the result of certain spices or seasonings.

Square Feet

A unit of area measurement in the imperial system, used mainly in the United States, equal to the area of a square with sides of one foot.

Skin

The body's largest organ, serving as a protective barrier against external factors, regulating temperature, and providing sensory information.