In Determining Where to Locate a Factory,BCS Corporation Develops a List

question 16

Multiple Choice

In determining where to locate a factory,BCS Corporation develops a list of stakeholders.Francois encourages the management to locate in a community with high unemployment because it will help a community become more economically stable.Mark states that it is important to consider whether the company will be able to arrange for raw materials to be shipped to the factory for production.Sarah notes that by relocating the firm should consider the environmental group,STOP,that used to picket the company,even though it hasn't been heard from for years.Which stakeholders should the company not necessarily consider in their decision?

• A) The environmental group, STOP
• B) Community in which they may locate
• C) Suppliers
• D) Media
• E) Government

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Definitions:

Excess Capacity

A situation where a company or economy can produce more goods than are being demanded, indicating underused resources.

Average Total Cost

Average total cost is the total cost of production divided by the total quantity produced, representing the cost per unit of output.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, indicating surplus beyond the normal profit level.

Demand Curves

Graphical representations that show the relationship between the price of a good or service and the quantity demanded by consumers.