Question

Although it brings many benefits to a firm, ___________ also limits a firm’s ability to realize significant experience curve cost economies and location economies. A. standardization B. customization C. assembly line production D. exporting

Answer 1

Answer:

B. Customization

Explanation:

-Standardization refers to developing guidelines that establish how a product is created which allows the company to decrease costs.

-Customization refers to adapting a product to adjust to the request of customers.

-Assembly line production is when the production process is arranged in workstations and the parts are added in each of them until the product is finished.

-Exporting refers to selling products manufactured in one country to another one.

According to this, the answer is that customization also limits a firm’s ability to realize significant experience curve cost economies and location economies because as the company has to adapt the products and the features are not standard, it is not able to optimize the manufacturing process and establish the operation in any place to minimize the costs.