Chapter 10.3, Problem 2R

To determine

To state: The aspects that should be considered when locating a business.

Answer to Problem 2R

Closeness to the market and the product approachability are some of the factors to be considered when locating a business.

Explanation of Solution

The proximity of the business to the market is one of the factors which states that the customers will buy goods and services when the shops are situated closer to them. The closer you are to the customers, the more they will buy from you.

Product approachability also plays an important role as good road connection, closeness to warehouse, easy transportation, etc helps the business to work smoothly.

Economics Concept Introduction

Introduction: Location of business holds a great importance as it will only decide whether the products are easily reachable to the customers or not.