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What Are the Three Factors in the Facility Location Decision

question 173

Essay

What are the three factors in the facility location decision? Provide examples of businesses most affected by each facility location factor.


Definitions:

Minimize Losses

Minimize losses refers to strategies or actions taken by businesses and investors to reduce financial losses or the negative impact of less successful investments.

Marginal Cost (MC)

The cost of producing one additional unit of output.

Marginal Revenue (MR)

The revenue derived from selling one additional unit of output.

Marginal Cost

The additional expense associated with manufacturing one extra unit of a product, emphasizing the cost variation.

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