Identify an Advantage of a Low Minimum Efficient Scale

question 72

Multiple Choice

Identify an advantage of a low minimum efficient scale.

• A)Allows the firm to accommodate demands for local responsiveness
• B)Discounts currency risk by manufacturing all products in one location
• C)Helps keep overheads low at the expense of fixed costs
• D)Helps a firm to standardize its products for all markets

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Definitions:

Market Rate Of Interest

The prevailing interest rate available in the open market, influencing the cost of borrowing and the return on savings.

Logging Company

A business that specializes in harvesting timber from forests for wood and paper products.

Present Value

The current worth of a future sum of money or streams of cash flows given a specified rate of return.

Standard Health Care

Standard health care refers to the basic level of health care that is considered acceptable and accessible to individuals within a certain society, which includes preventive, curative, and rehabilitative services.