If the dentist uses the drills only a few times, the cost for each use will be very high. It could easily meet these goals by selecting a site with extra space. The more space it obtains, however, the higher will be the cost of leasing the space. The entrepreneurs do not want to pay for space that they will not use. The business’s future production is based on demand for its product, which is uncertain. Motorola and Saturn (a division of General Motors) attribute some of their recent success to … [Read more...]