Which of the Following Is True with Regard to a Global

question 85

Multiple Choice

Which of the following is true with regard to a global product structure?

• A)A global product structure is disadvantageous for firms with diversified product lines that are aimed at dissimilar or dispersed markets.
• B)The advantages of this organizational form are market concentration, innovation, and responsiveness to new opportunities in a particular environment.
• C)In a global product structure, a cluster of products are grouped into a single division.
• D)A global product structure does not facilitate diversification and inhibits growth.

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Definitions:

AFC

Average Fixed Cost; the total fixed costs of production divided by the quantity of output produced, illustrating how fixed costs spread out over produced units.

Short Run

A period in which at least one input in the production process is fixed, limiting the ability to change production levels significantly.

Total Cost

The sum of fixed and variable costs incurred by a business in producing a certain level of output.

Short-Run Average Total Cost

Short-run average total cost is the total cost of production (fixed and variable costs) divided by the total output produced, calculated when at least one factor of production is fixed.