Which of the Following Is Not One of Porter's Home

question 12

Multiple Choice

Which of the following is not one of Porter's home base determinants?

• A) Related and supporting industries
• B) Governmental policy
• C) Factor conditions
• D) Home demand conditions
• E) Firm strategy, industry structure and rivalry

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit cost of production including both fixed and variable costs.

AVC

Average Variable Cost refers to the cost of producing each unit that varies with the volume of output.

AFC

Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.

Total Variable Cost

The sum of all costs that vary directly with the level of production or output, such as materials and labor.