The Choice of a Particular Location for Production Facilities

question 145

Multiple Choice

The choice of a particular location for production facilities

• A) depends solely on the transportation costs from suppliers.
• B) depends entirely on the availability of skilled and unskilled workers.
• C) is based entirely on the geographic locations of suppliers of parts.
• D) depends mainly on the arrangement of machinery, equipment, and personnel.
• E) often involves balancing the variables.

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Definitions:

Excess Burden

The cost to society created by market inefficiency, mainly due to taxes or government policies, that causes a deviation from an optimal allocation of resources.

Mutually Beneficial Exchanges

Transactions that provide benefits to all parties involved, ensuring a win-win situation.

Excise Tax

A tax levied on specific goods, services, or transactions, often aimed at discouraging their use or raising revenue.

Relative Burden

A measure of the comparative impact or weight of a specific demand, typically financial, on different entities or groups.