Final answer:
Firms reduce the cost of resources when locating near their market, improving communication and production.
Step-by-step explanation:
The correct answer is d) Market.
When a firm locates near its market, it reduces the cost of resources. This is because proximity to the market improves communication and production efficiency. It allows the firm to easily access its target customers, understand their needs, and respond quickly to market demands.
For example, a retail store that is located near its target market can reduce transportation costs and delivery times. It can also gather customer feedback more effectively and adapt its product offerings accordingly.