Which of the following is a consequence of a low minimum efficient scale?
A) It prevents a firm from utilizing capital equipment fully.
B) It enhances the need to centralize production in a single location or a limited number of locations.
C) It prevents a firm from accommodating demands for local responsiveness.
D) It increases the unit cost of products.
E) It allows a firm to hedge against currency risk by manufacturing the same product in several locations.
Correct Answer:
Verified
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