Which of These Factors Would Be Considered When Making a Location

question 26

Multiple Choice

Which of these factors would be considered when making a location decision at the region/community level?

• A) government rules, attitudes, stability, incentives
• B) cultural and economic issues
• C) zoning restrictions
• D) environmental impact issues
• E) proximity to raw materials and customers

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a factor of production, all other inputs remaining constant.

Profit

Total revenue minus total cost.

Diminishing Marginal Product

The principle that as more of a variable input is added to a fixed input, the additional output produced from each new unit of input will eventually decrease.

Production Function

A production function describes the relationship between inputs used in production and the output generated from those inputs.