While Maintaining Multiple Production Sites Does Provide a Firm Valuable

question 22

Multiple Choice

While maintaining multiple production sites does provide a firm valuable options,

• A)a firm may miss out on economies of scope.
• B)a firm may miss out on economies of scale.
• C)a firm may find that exchange rate changes can fully offset the advantage of multiple manufacturing sites.
• D)both a and b

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Definitions:

Total Revenue

The total income received by a firm from the sale of goods or services before any expenses are deducted.

Price Range

Price Range refers to the spread between the highest and lowest selling prices of a product or service in the market.

Unit Elastic

A situation in which a percentage change in price leads to an equivalent percentage change in quantity demanded, illustrating a direct one-to-one relationship.

Income Elasticity

An assessment of the variation in consumer demand for a product or service based on fluctuations in the consumer's income.