A Location Analysis Has Been Narrowed Down to Three Locations

question 44

Multiple Choice

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below:
What is the composite score for location B?

• A) 76
• B) 75
• C) 78
• D) 74
• E) 76.33

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Definitions:

Productive Efficiency

A situation where an economy or entity is operating in such a way that it cannot produce more of one good without decreasing the production of another good.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing surplus value created by a firm.

Excess Capacity

A situation where a firm or industry has more production resources available than is necessary to produce the current level of output, often indicating inefficiency.

Minimum ATC

Minimum ATC, or minimum average total cost, is the lowest point on the average total cost curve, representing the most efficient scale of production for a firm.