The Secret to Selecting the Ideal Location for a Business

question 9

Multiple Choice

The secret to selecting the ideal location for a business is:

• A)the available labor pool for the business.
• B)knowing the customer and what is convenient to them.
• C)the tax rate of the local and state governments.
• D)the security of the area and the services provided by the site to the business owner.

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Definitions:

Diamond/Water Paradox

An observation in economics illustrating how water, which is essential to life, is cheap, while diamonds, which do not sustain life, are expensive.

Bundle of Goods

A combination of different goods and services that are considered together, often in the context of consumer choice, preferences, and budget constraints.

Total Price

The complete cost of purchasing a product, including all taxes and fees.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another that is relatively cheaper.