In which of the following companies is decentralized production most appropriate
ID: 336963 • Letter: I
Question
In which of the following companies is decentralized production most appropriate?
a. company A which sells a product that serves universal needs, uses production technology with high fixed costs
b. company B which sells a product with high value-to-weight ratio, operates in an industry where location externalities are important.
c. company C which selles a unique prodduct, operates in an industry where location externalities are important.
d.Company D, which sells a product with low value-to-weight ratio, expects exchange rate to remain relatively stable.
e. Company E, which sells a product that does not serve universal needs operates in an industry where location externalities are not important
Explanation / Answer
In which of the following companies is decentralized production most appropriate?
a. company A which sells a product that serves universal needs, uses production technology with high fixed costs
b. company B which sells a product with high value-to-weight ratio, operates in an industry where location externalities are important.
c. company C which selles a unique prodduct, operates in an industry where location externalities are important.
d.Company D, which sells a product with low value-to-weight ratio, expects exchange rate to remain relatively stable.
e. Company E, which sells a product that does not serve universal needs operates in an industry where location externalities are not important