Which of the Following Statements Regarding Proximity in the Location

question 43

Multiple Choice

Which of the following statements regarding proximity in the location decision is false?

• A) Service organizations find that proximity to market is the most critical success factor.
• B) Clustering among financial firms occurs because they need to be near their highly skilled labor supply.
• C) Perishability of raw materials is a good reason for manufacturers to locate near the customer and not their supplier.
• D) Manufacturers want to be near customers when their product is bulky, heavy, or fragile.

---

Definitions:

Revenue-maximizing Price

The price point at which a business can generate the highest total revenue, considering the impact of price changes on sales quantity.

Football Tickets

Admissions to attend a football game, typically purchased and used to gain entry to a stadium where the game is played.

Demand Function

A mathematical expression that describes the relationship between the quantity demanded of a good and its determining factors, such as price, income, and prices of related goods.

Stadium Capacity

The maximum number of spectators that a stadium can accommodate, often determined for safety, comfort, or regulations.