ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The correct answer is Transportation cost.

Detailed explanation-2: -products to the market. The cost of transportation is determined by the distance traveled and the weight of the product being transported. Labor Usually this is the most expensive factor. As labor costs increase, profits of companies decrease.

Detailed explanation-3: -According to Weber, three main factors influence industrial location; transport costs, labor costs, and agglomeration economies. Location thus implies an optimal consideration of these factors.

Detailed explanation-4: -Weber’s least cost theory denotes that industry is situated within the area where the costs of transporting raw materials and the final output are minimal. Therefore, in this theory, weber attempted to the role of transportation costs when choosing the location of an industry.

Detailed explanation-5: -While discussing regional factors, Weber has discussed the idea of locational figure. According to him every industry will try to see that it is located at a place where raw material is available nearest to the place of consumption on the one hand and most advantageously located material deposits on the other.