QUESTION
Which of the following is a consequence of a low minimum efficient scale?
A. Preventing a firm from utilizing capital equipment fully
B. Necessitating centralized production in a single location or a limited number of locations
C. Preventing a firm from accommodating demands for local responsiveness
D. Increasing the unit cost of products
E. Allowing a firm to hedge against currency risk by manufacturing the same product in several locations
ANSWER
E
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