Asked by
Sakshi Dhakate
on Oct 11, 2024
Verified
Which statement is true?
A) The Japanese have not been selling below cost nor taking advantage of economies of scale.
B) The Japanese have been selling below cost and have been taking advantage of economies of scale.
C) The Japanese have been selling below cost but have not been taking advantage of economies of scale.
D) The Japanese have been taking advantage of economies of scale but have not been selling below cost.
Economies of Scale
The cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.
Selling Below Cost
The practice of offering goods or services for sale at a price that is less than the total cost to produce and sell them.
- Assess the contribution and effect of global enterprises on worldwide trade.
- Understand the dynamics of international trade relations and negotiations.
Verified Answer
OJ
Learning Objectives
- Assess the contribution and effect of global enterprises on worldwide trade.
- Understand the dynamics of international trade relations and negotiations.