Uvicon Inc.and Bionor Inc.are firms that compete against each other in the global market.Uvicon Inc.has a high level of fixed costs and high minimum efficient scale,while Bionor Inc.has a low level of fixed costs and minimum efficient scale.In this scenario,which of the following is true?

Question

Quizplus · Accepted Answer

Bionor Inc.'s low level of fixed costs and minimum efficient scale make decentralization of its production activities more beneficial, while Uvicon Inc.'s high level of fixed costs and high minimum efficient scale make centralization of production activities more beneficial. The other options are not necessarily true based on the information provided.