Which of the Following Statements Is Not True About Huff

question 80

Multiple Choice

Which of the following statements is not true about Huff Gravity Model?

• A) The model specifies two factors that assess the probability: (1)the attractiveness of the store's location and (2)the time it takes a consumer to travel to the store.
• B) It predicts the probability of a customer going to a specific store location.
• C) The formula indicates that the larger the size of the store compared with competing stores' sizes,the greater the probability that a customer will shop at the location.
• D) It is assumed that a larger size is generally more attractive in consumers' eyes because it means more merchandise assortment and variety.
• E) The greater travel time or distance for the consumer,compared with that of competing locations,the higher probability that the consumer will shop at the location.

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Definitions:

Comparative Advantage

The advantage conferred on an individual or country in producing a good or service if the opportunity cost of producing the good or service is lower for that individual or country than for other producers.

Absolute Advantage

The advantage conferred on an individual or country in an activity if the individual or country can do it better than others. A country with an absolute advantage can produce more output per worker than other countries.

Ricardian Advantage

A theory in economics that suggests countries should specialize in producing and exporting goods in which they have a relative productivity advantage.

Opportunity Cost

The sacrifice of gains that could have been obtained from alternative choices when one is selected.