Huff Improved Reilly's Law by Adding Which Variable to the Estimation

question 39

Multiple Choice

Huff improved Reilly's law by adding which variable to the estimation of trading areas?

• A) economic barriers
• B) the effect of travel time on different kinds of shopping trips
• C) median disposable income in each city
• D) the existence of primary, secondary, and fringe trading areas

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Net Income

The amount of profit remaining after all expenses, taxes, and costs have been deducted from total revenue.

Break-even Point

The point at which cost or expenses and revenue are equal, resulting in neither profit nor loss.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials.