Which of the Following Situations Would Lead a Firm to Choose

question 31

Multiple Choice

Which of the following situations would lead a firm to choose to decentralize production?

• A) The product serves universal needs.
• B) The production technology has high fixed costs and high minimum efficient scale relative to global demand or flexible manufacturing technology exists.
• C) Trade barriers are low.
• D) The production technology has low fixed costs and low minimum efficient scale, and flexible manufacturing technology is not available.

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Definitions:

Exercise

Physical activity that is planned, structured, and repetitive for the purpose of conditioning the body.

Binge Eating Disorder

An eating disorder marked by recurrent episodes of eating large quantities of food, often quickly and to the point of discomfort.

Anorexia Nervosa

A disorder marked by excessively low body weight, severe worry over weight gain, and an inaccurate view of one's own body weight or form.

Bulimia Nervosa

A condition where individuals engage in excessive eating followed by actions to expel the food in order to stop weight increase.