ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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bread is very perishable
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the finished product is bulk gaining
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baking is a footloose industry
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the finished product is bulk reducing
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Detailed explanation-1: -Why do manufacturers try to locate its factor as close as possible to its inputs and markets? To cut transportation costs.
Detailed explanation-2: -According to Alfred Weber’s theory of industrial location, three factors determine the location of a manufacturing plant: the location of raw materials, the location of the market, and transportation costs.
Detailed explanation-3: -Bulk-Gaining Industries A bulk-gaining industry makes something that gains volume or weight during production. To minimize transport costs, a bulk-gaining industry needs to locate near where the product is sold.
Detailed explanation-4: -» Bulk-reducing Industry: Because inputs weigh more than the final products, plant location is near market to reduce transportation costs. market. – Critical locational factor for three types of industries. – Production of a product that gains volume or weight during its production.