Calvert is contemplating building an aluminum smelting plant. The ratio of bauxite, the raw material from which aluminum is extracted, to aluminum is two to one. It takes two tons of bauxite to produce one ton of usable aluminum. Where should Calvert locate his smelting plant?

Question

Quizplus · Accepted Answer

Since the ratio of bauxite to aluminum is two to one, it is more cost-effective for Calvert to locate his smelting plant close to the bauxite mine to minimize transportation costs of the raw materials.

Calvert Is Contemplating Building an Aluminum Smelting Plant