It makes sense for a firm to produce where it can produce most economically-if the cost of transporting and storing products to match demand doesn't offset the production savings.

Question

Quizplus · Accepted Answer

This statement is true. Firms will aim to produce where it is most economically efficient, but they must also consider the cost of transporting and storing products to ensure it does not offset the production savings.

It Makes Sense for a Firm to Produce Where It