Availability of Adequate Labour Is a More Important Location Decision

question 43

True/False

Availability of adequate labour is a more important location decision for hotels and other service businesses than proximity to markets.

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Definitions:

Market Equilibrium

A situation in which the supply of an item is exactly equal to its demand, leading to a stable price for the item in the marketplace.

Negative Externality

A cost suffered by a third party due to an economic transaction that they were not involved in, often without compensation.

Externalities

External impacts of an economic activity on unrelated third parties, which can be either positive or negative.

Market Price

The existing cost at which a service or asset can be acquired or disposed of in a given market.