When Should a Firm Concentrate Its Production Facilities in a Centralized

question 131

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 not available
• E) When the product's value-to-weight ratio is low

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Definitions:

Antidepressants

Medications designed to improve symptoms of depression by altering chemical activity in the brain related to mood regulation.

Side Effects

Unintended reactions or outcomes that occur in addition to the desired therapeutic effect of a medication or treatment.

Depression

A psychiatric disorder defined by a constant state of depression or an absence of pleasure in hobbies, which significantly interferes with routine life activities.

Withdrawal Symptoms

Physical and mental symptoms that occur after stopping or reducing intake of a substance that the body has become dependent on.