Assume a Given Amount of Output Can Be Produced by Several

question 130

Multiple Choice

Assume a given amount of output can be produced by several small plants or one large plant with identical minimum per-unit costs.This long-run situation reflects the existence of

• A)Economies of scale.
• B)Diseconomies of scale.
• C)Constant returns to scale.
• D)Diminishing returns.

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Definitions:

Customer-Generated Franchising System

A customer-generated franchising system is a business expansion model where customers or users help to develop or promote franchised outlets, potentially influenced by their loyalty or satisfaction with the brand.

Agent-Sponsored Wholesale Franchise System

A franchising model combining agent wholesaling and franchising to expand distribution and reach of products.

Intensive Distribution

A distribution strategy that aims to provide widespread availability of a product by stocking it in as many outlets as possible.

Extensive Distribution

A distribution strategy that places a product in as many outlets as possible.