Robert 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 Robert locate his smelting plant?
A)Close to his customers.
B)Close to the bauxite mine.
C)Close to transportation.
D)Close to an area with a suitable labour supply.

Question

Quizplus · Accepted Answer

Since it takes two tons of bauxite to produce one ton of usable aluminum, it would be cost-effective for Robert to locate his smelting plant close to the bauxite mine in order to minimize transportation costs and ensure a steady supply of raw materials.

Robert Is Contemplating Building an Aluminum Smelting Plant