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Identify an Advantage of Adopting a Low Minimum Efficient Scale

Question 36

Multiple Choice
Identify an advantage of adopting a low minimum efficient scale.

Identify an advantage of adopting a low minimum efficient scale.


A) It helps companies reduce the level of initial capital required for business.
B) It allows the firm to accommodate demands for local responsiveness.
C) It allows firms to discount political risks and other global capital risks.
D) A minimum efficient scale of a plant allows decentralization of production.

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