ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -According to Weber, three main factors influence industrial location; transport costs, labor costs, and agglomeration economies.

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: -Weber’s Least Cost Theory attempts to describe and predict the location of manufacturing industries based on three factors: transportation costs, labor cost, and the benefit of agglomeration (clustering with similar, interdependent businesses).

Detailed explanation-4: -The optimal-location theory literature celebrates the selection of single best locations. As noted previously, there are effectively three approaches to this locational decision making: (1) cost minimization, (2) revenue or benefit maximization, and, (3) profit or net benefit maximization.