Specialized Operations Are

question 57

Multiple Choice

Specialized operations are:

• A) designed to tap specialized expertise or other resources in a company's worldwide subsidiaries.
• B) subsidiaries that are located anywhere in the world where they can benefit the organization.
• C) designed to take advantage of low factor costs.
• D) used to share information and resources throughout dispersed and specialized subunits.

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Definitions:

Cartel

An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.

Marginal Cost

The increase in total cost that arises from producing an extra unit of output.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often to maximize their profits illegally or unethically.