Question

according to the textbook, the benefits of manufacturing products in - house seem to be greatest when all of the following factors are involved,except?
o a. when the firm is simply more efficient than external producers.
o b. when maximum flexibility is necessary.
o c. when protecting proprietary technology is important.
o d. when there is excess production capacity or capacity that is best used by making the product in - house.
o e. when quality control is particularly important.
clear my choice

Explanation:

When a firm has maximum flexibility, it can easily switch between different suppliers or production methods. In - house manufacturing is more rigid in terms of production set - up and resource allocation. Firms are more likely to outsource when maximum flexibility is needed as external producers can often adapt more quickly to changing market demands. On the other hand, when a firm is more efficient than external producers (a), protecting proprietary technology (c), having excess production capacity (d), or needing strict quality control (e) are all valid reasons for in - house manufacturing.

Answer:

B. When maximum flexibility is necessary.