A System of Production in Which Each of a Product's

question 117

Short Answer

A system of production in which each of a product's components is produced in the location where the cost of producing the component is lowest is called ________.

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Definitions:

Total Costs

The total of all expenses involved in creating goods or services, encompassing both constant and fluctuating costs.

Daily Profit

The net financial gain or loss a business experiences on a daily basis.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service, considering available resources.

Inverse Demand

A function that expresses price as a function of quantity demanded, illustrating how the price of an item is determined by the quantity of it that consumers are willing to buy at different prices.