Which of the Following Strategies Can fiRms Undertake to Increase

question 62

Multiple Choice

Which of the following strategies can firms undertake to increase the minimum efficient scale in an industry?

• A) Reduce the quantity of raw material used to produce each additional unit.
• B) Make large investments in intangible assets such as brand names.
• C) Invest in cost-reducing technologies used in production.
• D) Reduce the level of sunk costs by reducing the plant size.

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Definitions:

Exploits Labor

The action or process where laborers' work is taken advantage of for profit, often under unfair conditions.

Foreign Direct Investment

Investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets.

Sociological Abstracts

An extensive database that provides abstracts of scholarly articles, books, and other sources in the field of sociology and related disciplines.

Neoliberal Globalization

A process characterized by the expansion of global markets and the dominance of neoliberal economic policies, emphasizing deregulation, free trade, and the reduction of government intervention.