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Shapes of Total Cost Curves in the Short Run

A company usi...

Question

A company using a contract manufacturer in a low-cost country, for example, may incur shipping costs that cancel out any unit cost advantages.

A

True

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B

False

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Solution

The correct option is A True
Contract manufacturing allows a company to use the products or services that are manufactured by another external production company,The client will then take that product or service and use their own customer service, marketing and packaging to sell the goods.

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