A Facility Location Factor That Is Important for Both Service

question 17

Multiple Choice

A facility location factor that is important for both service and manufacturing organizations is locating close to ________________________.

• A) labor supply
• B) sources of transportation
• C) suppliers
• D) warehouses
• E) natural resources

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Definitions:

Long Run

The time period in which all factors of production can be varied, but technology remains constant.

Product Differentiation

A marketing strategy that businesses use to distinguish their product from similar offerings in the market, through variations in quality, features, style, or branding.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for product differentiation and some price control.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price.