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
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