Concerning the influence that transportation costs have on the location of industry, which of the following industries is likely to have the greatest profit gain by locating the production facilities close to resource supplies?
A) autos
B) steel
C) soft drinks
D) valuable electronics goods

Question

Quizplus · Accepted Answer

Steel production requires large quantities of resources (such as iron ore and coal), and transportation costs can be a significant expense for companies. By locating production facilities closer to the resource supplies, transportation costs can be reduced, leading to a greater profit gain. The other industries listed (autos, soft drinks, valuable electronics goods) have less dependence on specific resource supplies and may not see as much benefit from locating production facilities close to resources.

Concerning the Influence That Transportation Costs Have on the Location