One of the Objectives in Facility Location Analysis Is to Select

question 12

Multiple Choice

One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?

• A) Infrastructure costs
• B) Movement of preproduction material between locations
• C) Taxes
• D) Construction costs
• E) Bribery costs

---

Definitions:

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction (utility) gained from each additional unit decreases.

Total Utility

The total satisfaction or benefit a consumer receives from consuming a particular quantity of a good or service.

Noncash Gift-giving

The act of giving gifts that do not involve direct monetary exchange, emphasizing the value of thoughtfulness and relationships.

Marginal Utility

Marginal utility refers to the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.