When the demand is equal or lower than the minimum efficient scale,multiple production facility locations are preferred.

Name: When the demand is equal or lower than the minimum efficient scale,multiple production facility locations are preferred.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

When demand is equal or lower than the minimum efficient scale, it is more efficient to concentrate production in a single location to minimize costs and avoid inefficiencies of operating multiple facilities below their most efficient scale.

When the Demand Is Equal or Lower Than the Minimum