A Single Facility Is Needed to Meet the Demand of Four

question 72

Multiple Choice

A single facility is needed to meet the demand of four regions depicted as follows: $$\begin{array} { | l | l | l | } \hline \text { Region Center } & \text { Coordinates } & \text { Demand } \\\hline A & ( 2,10 ) & 20 \\\mathrm {~B} & ( 7,10 ) & 5 \\\mathrm { C } & ( 2,2 ) & 10 \\\mathrm { D } & ( 7,4 ) & 10 \\\hline\end{array}$$ If the plant is located at A, what is the total load- distance score, assuming Euclidean distance?

• A) less than or equal to 1000
• B) more than 1000 but less than or equal to 1100
• C) more than 1100 but less than or equal to 1200
• D) more than 1200

---

Definitions:

Competitive Price-Searcher Market

A market in which the firms have a downward-sloping demand curve, and entry into and exit from the market are relatively easy.

Positive Economic Profit

Earnings that exceed both the explicit and implicit costs of a company, indicating a financial gain beyond the normal expectations of profit.

Maximum Economic Profit

The highest possible financial gain obtainable by a firm when total revenue exceeds both explicit and implicit costs.

Competitive

Characterized by rivalry, where entities vie against each other to achieve or win something, such as market share or high performance.