Why Does FedEx Purchase Its Trucks Externally, and Not Operate

question 22

Multiple Choice

Why does FedEx purchase its trucks externally, and not operate a truck manufacturing business?

• A)FedEx's needs are well below the minimum efficient scale for truck production
• B)FedEx's top managers do not like the truck manufacturing industry
• C)FedEx does not know how to produce trucks
• D)They could do - they've just not chosen to do so.

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