ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Each industry will try to find location at a place where transportation charges are the barest minimum, both in terms of availability of resources and place of consumption. According to him transportation costs are determined by the weight to be transported on the one hand and distance to be covered on the other.

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: -Solving Weber’s location model usually implies three stages; finding the least transport cost location and adjusting this location to consider labor costs and agglomeration economies. Transportation is the most important element of the model since other factors are considered only to have an adjustment effect.

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: -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.