Question

The processing point for a weight-gaining raw material:a. can be anywhere near the source and the marketb. should be near its sourcec. should be near the final market

Answer 1

The processing point for a weight-gaining raw material should be near the final market, as the finished product gets heavier or more expensive to transport during the manufacturing process. Locating the processing point near the final market minimizes transportation costs.

Step-by-step explanation:

The processing point for a weight-gaining raw material should be near the final market. Weight-gaining raw materials are those that get heavier or more expensive to transport during the manufacturing process. In order to minimize transportation costs, it is beneficial to locate the processing point near the final market where the finished product will be sold.

For example, Coca-Cola ships only the concentrated syrup from Atlanta to bottling plants around the world, where local water and other ingredients are added. This allows them to save on transportation costs and ensure freshness of the final product.

Weber's Location Model also supports this idea by considering transportation costs as a key factor in determining the best location for a factory. The model suggests that the factory should be closer to the input or output with the highest transport costs.

Answer 2

The processing point for a weight-gaining raw material: c. should be near the final market.

Factors of production is the fundamental building blocks of resources that are used by individuals (entrepreneurs) or business firms for the manufacturing (production) of finished goods and services, in order to meet the unending demands, needs and requirements of their customers (consumers).

In Economics, there are four (4) factors of production and these include the following:

1. Land
2. Capital resources
3. Entrepreneurship
4. Labor

In this context, we can reasonably infer and logically deduce that the processing point for a weight-gaining raw material should be cited near the final market.