Least-cost theory is a form of variable cost analysis, while the market-area argument is a form of variable revenue analysis.

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Least-cost theory focuses on minimizing production costs by considering factors like transportation, labor, and agglomeration, while the market-area (or central place theory) argument analyzes how location affects a company's ability to serve a market and generate revenue, taking into account the spatial distribution of customers and competitors.

Least-Cost Theory Is a Form of Variable Cost Analysis, While