Companies Using the Same Small-Scale Production Methods in All Markets

question 47

Multiple Choice

Companies using the same small-scale production methods in all markets (e.g. fast food, franchises) are using which type of global manufacturing network:

• A) Global exporter
• B) Globally integrated
• C) Globally coordinated
• D) Global specialization

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Definitions:

Marginal Costs

The supplementary cost arising from the manufacture of an extra unit of a good or service.

Variable Inputs

Inputs that can be adjusted in the short term to alter the level of output in the production process.

Marginal Cost Function

A mathematical representation showing how the cost of producing one additional unit of a good changes as production volume changes.

Optimal Output

The level of production that maximizes a firm’s profit or minimizes its cost under given conditions.