Which of the Following Statements Concerning Resource Flexibility Is BEST

question 96

Multiple Choice

Which of the following statements concerning resource flexibility is BEST?

• A)Flexible equipment is useful to companies with low production volumes and high customization.
• B)Investment in general-purpose equipment is warranted if the firm expects to sell more than the break-even amount.
• C)Manufacturing efficiency increases with general-purpose equipment.
• D)Resource flexibility is crucial for line-flow processing.

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Definitions:

Nonrenewable Resources

Natural resources that cannot be replenished at the same rate at which they are consumed.

Incentive Structures

Frameworks within an organization or economy designed to motivate and encourage specific behaviors and outcomes among participants.

Extraction Costs Curve

A graphical representation that shows how the cost of extracting a resource varies with the quantity extracted.

Marginal Extraction Costs

The additional costs associated with extracting one more unit of a resource, important in the economics of natural resource exploitation.