When Should a Firm Concentrate Its Production Facilities in a Centralized

question 72

Multiple Choice

When should a firm concentrate its production facilities in a centralized location?

• A)When the production technology has a low minimum efficient scale
• B)When the production technology has low fixed costs
• C)When important exchange rates are expected to remain relatively stable
• D)When flexible manufacturing technologies are unavailable
• E)When the product's value-to-weight ratio is low

---

Definitions:

Accidents

Unplanned events that can cause harm or damage, often preventable.

Associative Memory

The ability of the brain to link and recall information, objects, or concepts due to their relationship or association with each other.

Monetary Rule

A policy framework suggesting that the central bank should target the growth rate of the money supply in the economy.

Price Stability

The economic condition characterized by the absence of significant changes in the average price level of goods and services over time.