Question: PC Recycling converts recycled plastic bottles into plastic pellets for industrial use. Its facilities have an effective capacity of 177,000 pounds of plastic pellets per

PC Recycling converts recycled plastic bottles into plastic pellets for industrial use. Its facilities have an effective capacity of 177,000 pounds of plastic pellets per day. The company currently produces 129,000 pounds of pellets per day with daily input costs of $82,000. The capacity utilization of this operation is approximately:

Information technology firms in Silicon Valley, California. Car companies in Detroit, Michigan. Oil companies in Texas. Investment banking firms in Manhattan, NY. These are all examples of locating to:

lower the cost of building facilities

achieve visibility for customers

obtain supply chain flexibility

be close to resource clusters

Specialization of work, also known as division of labor, benefits productivity through all of the following mechanisms EXCEPT:

use of machines to assist work

learning effects from repetitive work

less switching between tasks

ability to adapt to changing environments

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