"Proximity" or closeness implies that a firm should locate "close" to something
What are the three kinds of proximity described in the text? What are the basic conditions under which each is appropriate? What kinds of firms are likely to use each of these?
The three are proximity to markets, proximity to suppliers, and proximity to competitors. Proximity to markets is appropriate when customers will not travel far to get the good or service, or when delivering the product to the customer is costly or difficult. Many services must be close to their markets, as must home construction. Proximity to suppliers is appropriate when raw materials are perishable, or when supplies are costly or bulky to transport. Seafood processors need to be near the docks, and smelters need to be near the mines. Proximity to competitors reflects a kind of synergy–retailers find that volume is higher when there are more competitors nearby, because this clustering brings higher traffic counts.
You might also like to view...
Suppose you have a 20 percent probability of having your cash lost or stolen, and you spend $25 each day. Your total cost of holding cash is (182.50/T) + (3.75 ×T). a.What is your cost of going to the ATM? b.What is the nominal interest rate? c.How often will you go to the ATM to minimize your costs?
What will be an ideal response?
Trading securities are valued on the balance sheet at market value
Indicate whether the statement is true or false
Saxena Corporation makes a product that has the following direct labor standards: Standard direct labor-hours 0.1hours per unitStandard direct labor rate$15.00per hourStandard cost$1.50per unitThe company budgeted for production of 2,900 units in July, but actual production was 2,800 units. The company used 250 direct labor-hours to produce this output. The actual direct labor rate was $14.10 per hour.The labor efficiency variance for July is:
A. $423 F B. $423 U C. $450 U D. $450 F
Other postemployment benefits (OPEB) include benefits other than pensions, such as health care, life insurance, and long-term care.
Answer the following statement true (T) or false (F)