Least Cost Theory
Leaning heavily on work developed by the relatively unknown Wilhelm Launhardt, Alfred Weber formulated a least cost theory of industrial location which tries to explain and predict the locational pattern of the industry at a macro-scale. It emphasizes that firms seek a site of minimum transport and labour cost.
The point for locating an industry that minimizes costs of transportation and labor requires analysis of three factors:
Read more about this topic: Alfred Weber
Famous quotes containing the words cost and/or theory:
“I acknowledge that the balance I have achieved between work and family roles comes at a cost, and every day I must weigh whether I live with that cost happily or guiltily, or whether some other lifestyle entails trade-offs I might accept more readily. It is always my choice: to change what I cannot tolerate, or tolerate what I cannot—or will not—change.”
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