Microchips and jewelry are examples of goods with
A) low fixed costs.
B) no minimum efficient scale.
C) low value-to-weight ratio.
D) highly wasted fixed costs in location decision.
E) high value-to-weight ratio.

Question

Quizplus · Accepted Answer

Goods with high value-to-weight ratios are typically items that are small and light but still have a relatively high value, such as microchips and jewelry. These types of goods are often expensive to produce, but the cost of transportation and storage is relatively low compared to their value. This makes them valuable and profitable items to manufacture and sell.

Microchips and Jewelry Are Examples of Goods with