The Factors Used to Evaluate Location of a Manufacturing Plant

question 7

True/False

The factors used to evaluate location of a manufacturing plant are usually different from the factors used in locating a service facility.

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Definitions:

MRP

Marginal Revenue Product; the additional revenue generated from employing one more unit of input or labor.

Derived Demand

Demand for resources derived from demand for the final product.

Final Demand

The demand for finished products by consumers, businesses, and the government, without any further processing or transformation.

Goods and Services

Represents the output of an economy, where goods are physical items and services are activities provided by others for benefit or pleasure.