Identify a Way by Which a Company Can Lower Costs

question 83

Multiple Choice

Identify a way by which a company can lower costs by shipping unassembled goods to an FTZ in an importing country.

• A) Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.
• B) If labor costs are lower in the importing country, substantial savings may be realized in the final product cost.
• C) Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.
• D) Declare components as obsolete inventory with no market value to lower import duties.
• E) Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.

Understand the concepts of excess capacity and economic profits in different market structures.

Differentiate between perfect competition and monopolistic competition in terms of pricing, output, and long-run equilibrium.

Identify the impact of product differentiation on monopolistic competition.

Recognize the role of advertising in monopolistic competition and its effects on consumer perceptions and market outcomes.

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Definitions:

Blood Incompatibility

A condition in which the blood types of a donor and recipient are mismatched, leading to potential rejection or destruction of the transfused blood.

RhoGAM Vaccine

A biologic product used to prevent Rh immunization, which can occur when an Rh-negative mother is exposed to Rh-positive fetal blood.

Nutritional Status

A measure of the body's health and vitality, determined by the intake, absorption, and use of nutrients.

Caloric Intake

The amount of calories consumed from foods and beverages by an individual within a certain time period.