One of the Objectives in Facility Location Analysis Is to Select

question 12

Multiple Choice

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

• A) Infrastructure costs
• B) Movement of preproduction material between locations
• C) Taxes
• D) Construction costs
• E) Bribery costs

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Definitions:

Economic Thinking

An approach to analyzing problems that considers the allocation of scarce resources and the trade-offs involved in decisions.

Additional Benefits

Extra advantages or positive outcomes that accompany a primary benefit or result.

Marginal Cost

The financial outlay required to produce an additional unit of a good or service.

Gasoline

A transparent, petroleum-derived liquid that is used primarily as a fuel in most spark-ignited internal combustion engines.