Which of the Following Statements Is True Regarding Location Economies

question 9

Multiple Choice

Which of the following statements is true regarding location economies?

• A)The demand and supply factors heavily influence the productivity of a location.
• B)They apply only to service providers.
• C)Each production activity generates more value in a particular location than elsewhere.
• D)They are restricted to business activities that involve product manufacturing.

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Definitions:

Marginal Cost

The elevation in overall cost triggered by assembling an extra unit of a product or service.

Overallocated

The condition of having allocated or committed more resources to a project, task, or item than is available or necessary.

Least-Cost

A method or strategy that involves choosing the option that minimizes the total costs of achieving a particular objective.

Pure Competition

A market structure characterized by a large number of small firms, free entry and exit, and a product that is considered perfectly homogeneous, leading to firms being price takers.