In an industry where transportation costs are high and there are limited scale economies,
A)firms will locate close to the market.
B)firms will locate close to their input sources.
C)firms might locate in either area.
D)firms will locate where policy makers decide.

Question

Quizplus · Accepted Answer

When transportation costs are high and there are limited scale economies, firms will typically locate close to the market to minimize transportation costs and maximize their ability to serve customers efficiently.

In an Industry Where Transportation Costs Are High and There