Question :
81.Which of the following true of high value-to-weight ratio products? : 1299486
81.Which of the following is true of high value-to-weight ratio products?
A. They tend to have greater weight than other products.
B. Their transportation costs account for a very small percentage of total costs.
C. They tend to be inexpensive.
D. There is great pressure to produce these products in multiple locations close to major markets.
E. These products gain weight as raw materials get processed during transportation.
82.Which of the following is true of products with high value-to-weight ratios?
A. They are expensive to transport.
B. They tend to increase in weight after processing
C. They tend to be restricted under trade barriers.
D. They are expensive and do not weigh very much.
E. They have a low inventory turnover.
83.Which of the following products is best manufactured in multiple locations close to major markets to reduce transportation costs?
A. Pharmaceuticals
B. Petroleum products
C. Books
D. Magazines
E. Electronics
84.Which of the following holds true for products with low value-to-weight ratios?
A. They are relatively expensive.
B. They do not weigh very much.
C. Their transportation costs account for a very small percentage of total costs.
D. It is advisable to manufacture them in multiple locations close to major markets.
E. Examples of these products are electronic components and pharmaceuticals.
85.Which of the following statements is true of industrial products such as steel?
A. They serve needs that are the same all over the world.
B. They have drastic national differences in consumer taste and preference.
C. The need for local responsiveness for these products is more than consumer products.
D. It makes sense to produce these products in multiple locations close to major markets.
E. A plant must operate at the highest minimum efficient scale of output for these products.
86.Which of the following is true of a product that serves universal needs?
A. It becomes necessary to customize the product to suit small consumer groups.
B. It becomes necessary to accommodate demands for local responsiveness.
C. It increases the attractiveness of concentrating production at an optimal location.
D. It is difficult to serve national differences in consumer taste and preference.
E. It is attractive to globally disperse production to all major markets.
87.Concentration of production makes most sense when:
A. trade barriers are low.
B. the product’s value-to-weight ratio is low.
C. important exchange rates are volatile.
D. flexible manufacturing technology does not exist.
E. the production technology has low fixed costs.
88.When should a firm concentrate its production facilities in a centralized location?
A. When the production technology has a low minimum efficient scale
B. When the production technology has low fixed costs
C. When important exchange rates are expected to remain relatively stable
D. When flexible manufacturing technologies are not available
E. When the product’s value-to-weight ratio is low
89.Which of the following firms should concentrate its production in a centralized location?
A. Jupiter Inc. operates in an industry where the fixed costs are high and services of supporting industries are of prime importance.
B. Star Goal Inc. manufactures consumer products like processed food, apparel, and cosmetics for which national differences in consumer taste and preference are wide.
C. Uranious Inc. operates in an economy where volatile fluctuations in exchange rates are frequently expected.
D. Earth Ventures Inc. is a mining company that exports iron ore—a product with low value-to-weight ratio—to various countries.
E. Silver Times Inc. customizes heavy machines without the use of flexible manufacturing technologies.
90.When is decentralization of manufacturing facilities most appropriate?
A. When the product serves universal needs
B. When exchange rates are expected to remain relatively stable
C. When the product’s value-to-weight ratio is high
D. When there are few trade barriers
E. When the production technology has low minimum efficient scale
