Final answer:
Amazon's deliberation for HQ2's location involved evaluating factors like economies of scale and cost structures. They needed a site that matched their operational needs and strategic growth while maintaining low costs. The complexity of this decision mirrors how they and other firms approach market competition.
Step-by-step explanation:
The decision-making process for locating Amazon's HQ2 was highly complex due to several critical aspects that needed thorough consideration. Amazon had to evaluate multiple factors related to economies of scale, cost structures, and production models. The company's goal to maintain low average costs per sale, while expanding its brick-and-mortar presence, required a meticulous analysis of potential locations. High-rent retail spaces were avoided as Amazon traditionally operates via online sales and delivery, with inventories held in low-rent, computerized warehouses. A location for HQ2 needed to support Amazon's vast operational and logistical requirements, take advantage of economies of scale, and align with strategic goals such as access to talent, proximity to customers, and potential for growth. This intricate selection process is reflective of how firms like Amazon determine what to sell, at what output, and at what price, all while considering the implications on the overall cost of doing business and competing effectively in the market.