Based on the following information, determine the location quotient for Amusement City and whether this city has a competitive advantage in the amusement industry. Employment in Amusements and Recreation in Amusement City: 54,446; Total Employment in Amusement City: 578,477; Employment in Amusements and Recreation (nationally): 1,381,377; Total Employment (nationally): 106,201,232.
A) 0.14; No, the city does not have a competitive advantage in this industry.
B) 7.24; No, the city does not have a competitive advantage in the industry
C) 0.14; Yes, the city has a competitive advantage in this industry
D) 7.24; Yes, the city has a competitive advantage in this industry

Question

Quizplus · Accepted Answer

The location quotient (LQ) is calculated as (local industry employment / total local employment) / (national industry employment / total national employment). For Amusement City, LQ = (54,446 / 578,477) / (1,381,377 / 106,201,232) = 7.24. An LQ greater than 1 indicates a competitive advantage in the industry.

Based on the Following Information, Determine the Location Quotient for Amusement