Which of the following is NOT generally true of an industrial location?
A) The farther something is transported, the higher the cost.
B) A manufacturer tries to locate its factory as close as possible to both buyers and sellers.
C) If inputs, such as raw materials for production (metal ores, coal, water, etc.), are more expensive to transport than products, the optimal location for a factory is near the source of inputs.
D) If the cost of transporting the product to customers exceeds the cost of transporting inputs, then the optimal plant location is as close as possible to the customer.
E) If the cost of transporting the product to customers exceeds the cost of transporting inputs, then the optimal plant location is as close as possible to the source of raw materials.
Answer: E
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