If Facilities Have Lower Fixed Costs

Multiple Choice

If facilities have lower fixed costs,

A) a few high-capacity facilities are preferred because this helps lower transportation costs.
B) a few local facilities are preferred because this helps lower transportation costs.
C) many high-capacity facilities are preferred because this helps lower transportation costs.
D) many local facilities are preferred because this helps lower transportation costs.
E) one central facility is preferred because this helps lower transportation costs.