The Centre-Of-Gravity Method to Find a Location for a Factory

question 33

Multiple Choice

The centre-of-gravity method to find a location for a factory works by:

• A) Locating near to the main customer
• B) Locating near to the main supplier
• C) Locating near to a cluster of suppliers
• D) Locating in a place that minimises total transport costs to and from the location

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Definitions:

Consumer Price Index

A metric that tracks the average fluctuation in prices urban consumers pay for a selection of consumer products and services over time.

Retail Price Changes

refers to fluctuations in the price levels of goods and services sold by retailers to the end consumer, influenced by factors such as supply, demand, and production costs.

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and free entry and exit, with no single seller or buyer having market control.

Many Buyers

A market condition characterized by the presence of numerous purchasers, increasing competition and potentially lowering prices.