Which of the Following Statements Is True About Performing a Manufacturing

question 81

Multiple Choice

Which of the following statements is true about performing a manufacturing activity in several locations at once?

• A)A manufacturing activity must be performed at multiple locations when the fixed costs of setting up a production plant are high.
• B)Performing a manufacturing activity in several locations makes it difficult for a firm to accommodate demands for local responsiveness.
• C)Producing in multiple locations reduces the bargaining power of a firm against manufacturers.
• D)The larger the minimum efficient scale of a plant relative to total global demand, the greater the need for decentralizing production to multiple locations.
• E)Many firms disperse their manufacturing plants to different locations as a "real hedge" against potentially adverse moves in currencies.

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Definitions:

Linearly Related

A connection between two variables in which a variation in one is linked to a corresponding change in the other.

Regression Model

A statistical model that estimates the relationship between a dependent variable and one or more independent variables.

Individual Coefficient

A specific value that quantifies some type of relationship in mathematical or statistical models.

Standard Error

The standard deviation of the sample distribution of a statistic, often used to estimate the precision of sample means.