Concentrating production at an optimal location is more attractive when a product serves universal needs.

Question

Quizplus · Accepted Answer

When a product serves universal needs, there is a larger market for it, which makes it more attractive to concentrate production at an optimal location in order to save costs and maximize efficiency. This is because the demand for the product is not limited to a particular geography or demographic, making it easier to predict sales and achieve economies of scale by producing in bulk at a central location.

Concentrating Production at an Optimal Location Is More Attractive When