In some cases the _______________ costs of setting up a manufacturing plant are so high that a firm must serve the world market from a single location or from a very few locations.

Question

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The term "fixed costs" refers to costs that do not vary with production levels, such as the cost of setting up a manufacturing plant. Since the costs are high, it is likely that they are fixed costs, and this may limit the firm to serving the world market from only one or a few locations.

In Some Cases the _______________ Costs of Setting Up a Manufacturing