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:

Lexically Ambiguous

Refers to words or phrases with multiple meanings, leading to potential misunderstandings or varied interpretations based on context.

Whorf's Hypothesis

Whorf's Hypothesis, also known as the linguistic relativity hypothesis, suggests that the structure of a language affects its speakers' worldview and cognition.

Color Perception

The ability of the visual system to differentiate and interpret various wavelengths of light as distinct colors.

Semantics

The study of meaning in language, including the analysis of the meanings of words, phrases, sentences, and texts.