The ________ Predicts That the Optimal Location of a Service

question 11

Multiple Choice

The ________ predicts that the optimal location of a service is directly related to the number of people in the area and inversely related to the distance people must travel to access it.

• A) gravity model
• B) central place theory
• C) rank-size rule
• D) threshold rule
• E) range predictor

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Definitions:

Small Business Owner's Product

A product or service that is offered by an entrepreneur owning and running a small-scale business.

Breakeven Point

The level of production or number of sales at which costs equal revenues, resulting in neither profit nor loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Luxury Goods

Products or services that are not essential but are considered desirable and are associated with high quality and high price.