Industrial Location Theory

Who developed the Model of Least Cost Location?

• David Ricardo

• Alfred Weber

• August Lösch

• William Alonso

What is the primary goal of Weber's Model?

• Enhancing product quality

• Maximizing market demand

• Minimizing total costs

• Increasing labor supply

In Weber's Model, what does the Material Index (MI) indicate?

• The cost of labor

• The weight of finished products

• The distance to the market

• The relationship between raw materials and finished products

What does a Material Index greater than 1 indicate?

• Weight-Gaining Case

• High transportation costs

• Equal weight of materials and products

• Weight-Losing Case

What is a key assumption of Losch's Market Area Analysis?

• Firms collaborate with each other

• Population is evenly distributed

• Transportation costs are variable

• Consumers have diverse preferences

What shape does the demand curve create when rotated in Losch's Model?

• A cylinder

• A pyramid

• A sphere

• A demand cone

What does the Bid-Rent Theory primarily explain?

• Labor market dynamics

• Consumer preferences

• Transportation costs

• Urban land use patterns

What is the Bid-Rent Function?

• A measure of land value

• A model for labor costs

• A curve showing rent willingness based on distance

• A graph of transportation costs

According to Bid-Rent Theory, which type of land use is likely to be found closest to the CBD?

• Agricultural land

• Retail businesses

• Industrial zones

• Residential areas

What does the term 'location rent' refer to?

• The rent paid by consumers

• The price of finished products

• The value of land based on distance from the CBD

• The cost of raw materials