Which of the Following Occurs When a Company Sells Its

question 71

Multiple Choice

Which of the following occurs when a company sells its products to buyers in a target market without going through intermediary companies?

• A)export through local distributors
• B)export through agents
• C)sale through export management companies
• D)sale through export trading companies

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Definitions:

Diseconomies of Scale

Increases in cost per unit when output increases, resulting from factors such as management challenges, inefficiencies, and communication problems as firms grow larger.

Large-Scale Business

An enterprise or organization that operates on a significant scale, typically involving extensive operations, large numbers of employees, or substantial revenue.

Diseconomies of Scale

The phenomenon where production costs increase as a firm or industry grows, leading to reduced efficiency and higher per-unit costs.

Law of Diminishing Returns

The principle that adding more of one factor of production, while keeping others constant, will eventually yield lower per-unit returns.