Which of the Following Is a Consequence of a Low

question 50

Multiple Choice

Which of the following is a consequence of a low minimum efficient scale?

• A) It prevents a firm from utilizing capital equipment fully.
• B) It enhances the need to centralize production in a single location or a limited number of locations.
• C) It prevents a firm from accommodating demands for local responsiveness.
• D) It increases the unit cost of products.
• E) It allows a firm to hedge against currency risk by manufacturing the same product in several locations.

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Definitions:

Action Potential

A temporary shift in the electrical charge of a neuron's membrane, leading to the transmission of a nerve impulse.

Threshold

The level of stimulation required to trigger a neural impulse.

Neural Impulse

Electrical signals that travel along neurons, facilitating the transmission of information throughout the nervous system.

Stimulation

The activity of encouraging or arousing interest, excitement, or activity in someone or something.