In Which of the Following Instances Does Concentration of Production

question 3

Multiple Choice

In which of the following instances does concentration of production make most sense?

• A)Location externalities are not important.
• B)The production technology has low fixed costs.
• C)Important exchange rates are expected to remain relatively stable.
• D)Flexible manufacturing technology is not available.

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Definitions:

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a period.

Profit Margin

A financial metric indicating the percentage of revenue that remains as profit after all expenses are subtracted from sales.

Inventory Turnover

A ratio indicating how often a company's inventory is sold and replaced over a period, highlighting efficiency in managing stock and sales.

Grocery Store

A grocery store is a retail establishment that specializes in selling food and other household goods.