If all sellers in an industry selected the same location as a basing point, no seller would enjoy a locational advantage with regard to freight charges.

Question

Quizplus · Accepted Answer

This statement is true. If all sellers selected the same location as a basing point, then they would all be equidistant from their customers and shipping costs would be the same for all of them. Therefore, no seller would have a locational advantage in terms of freight charges.

If All Sellers in an Industry Selected the Same Location