Why is the level of fixed costs important to technological factors?

Why is the level of fixed costs important to technological factors?




Answer:

- If fixed costs are high, produce in a single location or a few locations
- When fixed costs are low, multiple production plants may be possible
- Allows firms to respond to local demand

Comments

Popular posts from this blog

Examine the collapse of Han. What factors explain how this occurred? How influential in Han Dynasty on Chinese History?

Summarize effective communication strategies in organizational hierarchies, and review the role and relevance of the organizational grapevine

Examine the age-structure diagrams of Sweden and Kenya below, and answer the following questions. Compare and contrast the two age structure diagrams in terms of two population dynamics - birth rate and death rate.