When Concentrating Production in a Few Locations, Which of the Following

question 93

Multiple Choice

When concentrating production in a few locations, which of the following can allow a manufacturer to lower unit costs, boost quality, or master a new technology more quickly?

• A)significant scale economies
• B)learning-curve effects
• C)superior resources
• D)profit sanctuaries
• E)supporting industries

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Definitions:

Consequential Damages

Compensation for losses that directly and foreseeably result from the breach of a contract or other wrongful act.

Lost Profits

Damages claimed in a lawsuit representing the profits one would have made but for another party's wrongful act.

Speculative

Involving a high risk of loss but also offering the potential for substantial gains, often based on future expectations rather than current realities.

Insolvent

Being insolvent means lacking the financial ability to pay debts when they are due, which can lead to bankruptcy or other legal financial proceedings.