Which of the Following Factors Is the Most Important Determinant

question 59

Multiple Choice

Which of the following factors is the most important determinant of a firm's location in most industries?

• A) land
• B) labor
• C) capital
• D) technical skills
• E) all of the above are equally important

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Definitions:

Average Total Cost

The per unit cost of production, calculated by dividing the total costs by the quantity of output produced.

Profit-maximizing

A strategy or point at which a business makes the greatest financial gain, where marginal revenue equals marginal cost.

Total Revenue

The overall income generated by a business from its sales or services before any costs or expenses are subtracted.

Total Cost

The sum of fixed and variable costs incurred by a firm in producing and selling a product.