If production technology displays significant economies of scale, many local locations are the most effective.
Understand the Problem
The question discusses the effectiveness of local production locations in relation to economies of scale in production technology. It is likely asking about the implications or outcomes of such a situation.
Answer
FALSE
The final answer is FALSE.
Answer for screen readers
The final answer is FALSE.
More Information
Economies of scale mean that higher production volumes lower the cost per unit. Therefore, a few high-capacity locations are more efficient rather than many local ones.
Tips
A common mistake is confusing economies of scale with the benefits of being close to the market. Economies of scale favor fewer large-scale operations.
Sources
- Solved If production technology displays significant | Chegg.com - chegg.com
- True or False #5 Flashcards by Maxi Ludwig - Brainscape - brainscape.com
- Chapter 5 Network Design in the Supply Chain - studocu.com
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