One of the Objectives of Facility Location Analysis Is to Select

question 46

Multiple Choice

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?

• A) Becoming less responsive to the customer
• B) Supplier costs
• C) Taxes
• D) Construction costs
• E) Product life cycle costs

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Definitions:

Price Elasticity of Supply

A measure of how much the quantity supplied of a good changes in response to a change in its price.

Price Elasticity of Supply

Price elasticity of supply measures how the quantity supplied of a good changes in response to a change in its price.

Income Elasticity of Demand

A measure of how much the quantity demanded of a good changes in response to a change in consumers' income.

Midpoint Method

A technique used in economics to calculate the percentage change in quantity demanded or supplied between two points on a curve, providing an average elasticity for that range.