Johnson Enterprises Manufactures Computer Chips Used in Cell Phones

question 12

Multiple Choice

Johnson Enterprises manufactures computer chips used in cell phones.The MNE has long production runs that lower the per unit cost of each chip.The firm also purchases materials in bulk from its suppliers with whom Johnson has long-term contracts.Johnson is most likely benefiting from ________.

• A)economies of scale
• B)the cluster effect
• C)digitization
• D)location economies

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Definitions:

Atrial Natriuretic Peptide

A hormone produced by the heart that helps regulate blood pressure and fluid balance.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, a critical vital sign that reflects the heart's function and the arterial blood vessels' condition.

ACTH

Adrenocorticotropic hormone, a hormone produced by the pituitary gland to stimulate the adrenal glands to release cortisol.

Growth Hormone

A protein-based hormone secreted by the pituitary gland that stimulates growth, cell reproduction, and regeneration in humans and other animals.