With respect to service facility location, it is not prudent to open:
A) a new facility next to one's competitors.
B) multiple facilities within the same area, thus cannibalizing one's own business.
C) an information-based service in a downtown area with high real estate prices.
D) all of the above.

Question

Quizplus · Accepted Answer

Opening an information-based service in a downtown area with high real estate prices would increase the cost of operation, which would ultimately be passed on to the customers. This could potentially make the service unaffordable or unattractive to the target market. Therefore, it is not a wise decision to open such a facility in such an expensive location.

With Respect to Service Facility Location, It Is Not Prudent