Which of the Following Is NOT Generally True of an Industrial

question 23

Multiple Choice

Which of the following is NOT generally true of an industrial location?

• A) The farther something is transported, the higher the cost.
• B) A manufacturer tries to locate its factory as close as possible to both buyers and sellers.
• C) If inputs, such as raw materials for production (metal ores, coal, water, etc.), are more expensive to transport than products, the optimal location for a factory is near the source of inputs.
• D) If the cost of transporting the product to customers exceeds the cost of transporting inputs, then the optimal plant location is as close as possible to the customer.
• E) If the cost of transporting the product to customers exceeds the cost of transporting inputs, then the optimal plant location is as close as possible to the source of raw materials.

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Definitions:

Voidable

A term describing a legal agreement that may be declared invalid by one of the parties due to certain conditions not being met or due to the presence of coercion, misrepresentation, or fraud.

Voluntary

Acting or done willingly and without obligation or compensation.

Public Policy

Principles and standards regarded by the legislature or courts as being of fundamental concern to the state and the whole of society.

Illegal

That which is forbidden by law; activities or actions that are against statutory laws and regulations.