If facilities have higher fixed costs,many local facilities are preferred because this helps lower transportation costs.

Name: If facilities have higher fixed costs,many local facilities are preferred because this helps lower transportation costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Higher fixed costs typically lead to a preference for fewer, larger facilities to achieve economies of scale, rather than many local facilities which might not utilize these fixed costs as efficiently.

If Facilities Have Higher Fixed Costs,many Local Facilities Are Preferred