A Business Would Want to Concentrate Its Production Facilities in a Centralized

question 58

Multiple Choice

A business would want to concentrate its production facilities in a centralized location when

• A) the production technology has a low minimum efficient scale.
• B) the production technology has low fixed costs.
• C) the product serves universal needs.
• D) flexible manufacturing technologies are unavailable.
• E) the product's value-to-weight ratio is low.

---

Definitions:

Taxes on Earnings

These are financial charges imposed by governments on individuals or entities based on their income or profits.

Fiscal Policy

Fiscal policy involves government spending and taxation decisions aimed at influencing economic conditions, such as stimulating economic growth, controlling inflation, and reducing unemployment.

Aggregate Supply Curve

A graphical representation showing the relationship between the total quantity of goods and services that producers in an economy are willing to supply at varying price levels.

Discretionary Fiscal Policy

Economic policies based on government spending and taxation decisions that are used to influence macroeconomic conditions, including aggregate demand, employment, and inflation.