Johnson Enterprises Manufactures Computer Chips Used in Cell Phones

question 12

Multiple Choice

Johnson Enterprises manufactures computer chips used in cell phones.The MNE has long production runs that lower the per unit cost of each chip.The firm also purchases materials in bulk from its suppliers with whom Johnson has long-term contracts.Johnson is most likely benefiting from ________.

• A)economies of scale
• B)the cluster effect
• C)digitization
• D)location economies

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Definitions:

Philanthropic

Pertaining to the act of contributing to the welfare of others, often through charitable donations or actions by individuals or organizations.

Beyond Compliance

Adopting ethical standards and practices that exceed the minimum legal requirements, often to achieve greater social responsibility or environmental stewardship.

Differential Value

The unique value that a product or service offers to its customers, distinguishing it from competitors' offerings.

Environmental Impact

The effect that human activities and natural events have on the environment, including changes to ecosystems, resource depletion, and pollution.