The Transportation Model Method for Evaluating Location Alternatives Minimizes Total

question 6

Multiple Choice

The transportation model method for evaluating location alternatives minimizes total:

• A) sources.
• B) destinations.
• C) capacity.
• D) demand.
• E) shipping cost.

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Definitions:

Economic Profit

The difference between total revenue and the sum of explicit and implicit costs.

Marginal Revenue

Marginal Revenue is the additional income received from selling one more unit of a good or service.

Market Price

The present cost at which a service or asset is available for purchase or sale in a specific market.

Profit

The financial gain realized when the amount of revenue gained exceeds the expenses, costs, and taxes involved in sustaining the activity.