Organizations That Process Natural or Basic Resources as Raw Materials

question 26

Multiple Choice

Organizations that process natural or basic resources as raw materials or other essential inputs to obtain their outputs will locate near their resources if one of the following conditions holds:

• A)High economies of scale exist for the product
• B)The raw material can be shipped long distance before being processed
• C)There is a large loss in size or weight during processing.
• D)Both A and C

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Definitions:

Bargain Brand Noodles

Low-cost noodle brands that offer savings compared to mainstream or premium brands without compromising much on quality.

Responsiveness

The ability of a system or organization to react quickly and positively to changes or requests.

Quantity

The amount or number of a material or immaterial good that is considered disposable or usable.

Income Elasticity of Demand

Income elasticity of demand measures how the quantity demanded of a good or service changes in response to a change in consumers' income.