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In General,when Substantial Investments in Specialized Assets Are Required to Manufacture

Question 16

Multiple Choice

In general,when substantial investments in specialized assets are required to manufacture a component,a firm will:


A) prefer to make the component internally rather than contract it out to a supplier.
B) find an alternative method of manufacturing the component.
C) contract out the production of the component rather than make it internally.
D) discontinue making the product that the component goes into.

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