Which of the Following Situations Would Lead a Firm to Choose

question 31

Multiple Choice

Which of the following situations would lead a firm to choose to decentralize production?

• A) The product serves universal needs.
• B) The production technology has high fixed costs and high minimum efficient scale relative to global demand or flexible manufacturing technology exists.
• C) Trade barriers are low.
• D) The production technology has low fixed costs and low minimum efficient scale, and flexible manufacturing technology is not available.

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Definitions:

Adler

Refers to Alfred Adler, an Austrian psychiatrist known for his development of individual psychology, emphasizing the importance of feelings of inferiority and societal contributions.

Psychological Disorder

A pattern of behavioral, cognitive, or physical symptoms that cause significant distress, impair daily functioning, or both.

Sociocultural Approach

A perspective in psychology that examines the ways in which social and cultural environments influence behavior.

Horney

Refers to Karen Horney, a psychoanalytic psychologist known for her theories on neurosis, personality development, and the concept of basic anxiety.