Which of the Following Methods Best Considers Intangible Costs Related

question 1

Multiple Choice

Which of the following methods best considers intangible costs related to a location decision?

• A) crossover methods
• B) locational break-even analysis
• C) factor-rating analysis
• D) the transportation method
• E) the assignment method

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Definitions:

Price-Taker Market

A market situation where sellers or buyers have no influence on the price of a product or service, taking the market price as given.

Market Price

The current price at which a good or service can be bought or sold on the open market, determined by the forces of supply and demand.

Total Market

The entire demand for a certain product or service, inclusive of all segments and types of consumers within a market.

Price Searchers

Firms or individuals who actively seek out and compare prices in an effort to find the most favorable market conditions.