Kitchen-Rite believes that by producing its small appliances in Canada, they can take advantage of lower wage rates in that country. By pursuing such a strategy, Kitchen-Rite hopes to realize
A) a position inside the efficiency frontier.
B) the experience curve.
C) economies of scale.
D) location economies.
E) demographic advantages.

Question

Quizplus · Accepted Answer

By producing in Canada to take advantage of lower wage rates, Kitchen-Rite aims to benefit from location economies, which involve optimizing production costs by choosing favorable geographic locations.

Kitchen-Rite Believes That by Producing Its Small Appliances in Canada