Creation | Purpose | Applications | Assumptions | Pot Pourri |
---|---|---|---|---|
Alfred Weber
Who made the Least Cost Theory?
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To show how the location of manufacturing establishments is determined by the minimization of three critical expenses
Why was the model created?
|
Locate closer to the market
How could an establishment minimize transportation costs?
|
Numerous competitive single plant firms
Name an assumption based on the market
|
Sara Stout
What is the full name of our APHG teacher?
|
A triangle
What is the shape of the model?
|
Manufacturing establishments
Who would benefit from using this model?
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Find cheap labor
How could an establishment minimize labor costs?
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Transportation costs are a linear function of distance
Name an assumption based on transportation
|
Two
How many kids does Ms. Stout have?
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The clustering of people or activities
What is agglomeration?
|
An establishment would use this model to determine where to locate in order to minimize the three critical expenses
Why would this model be used?
|
Locate closer to the market
How could an establishment minimize agglomeration costs?
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There is infinite demand for a product at a given price
Name an assumption based on product demand
|
May 12th
What day is our APHG exam?
|
Transportation, labor, and agglomeration
What are the three focuses on minimizing cost?
|
Finished product is lighter than raw materials and costs less to transport (Ex: Toothpicks)
What is a weight-losing case?
|
Near the market
Where would firms with heavier products locate?
|
There is identical production technology everywhere
Name an assumption based on production technology
|
Germany
What country is the creator of the model from?
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Raw materials, business, and market
What do the three points of the Least Cost Theory model represent?
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Finished product is heavier than raw materials and costs more to transport (Ex: Cars)
What is a weight-gaining case?
|
Where would firms with lighter products locate?
Near the source of the raw materials
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Producers face no risk or uncertainty
Name an assumption based on production risk
|
Unit 6: Industrialization and economic development
What unit is this model from?
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