Podcast
Questions and Answers
Which factor does Weber's theory primarily consider when calculating transportation costs?
Which factor does Weber's theory primarily consider when calculating transportation costs?
- Quality of goods transported
- Modes of transportation
- Rates charged by various transporters
- Weight and distance (correct)
Why is Weber's assumption about fixed labor centers considered unrealistic?
Why is Weber's assumption about fixed labor centers considered unrealistic?
- Increased mobility of labor. (correct)
- Government regulations.
- Technological advancements.
- Labor costs vary significantly across regions.
According to the criticisms of Weber's theory, what happens to labor rates with the concentration of industry?
According to the criticisms of Weber's theory, what happens to labor rates with the concentration of industry?
- Labor rates decrease due to increased competition.
- Labor rates increase. (correct)
- Labor rates fluctuate unpredictably.
- Labor rates remain stable.
Which of the following is a critique of Weber's assumption regarding consumption centers?
Which of the following is a critique of Weber's assumption regarding consumption centers?
How does the mobility of labor challenge Weber's theory?
How does the mobility of labor challenge Weber's theory?
What aspect of real-world transportation costs does Weber's calculation primarily overlook?
What aspect of real-world transportation costs does Weber's calculation primarily overlook?
In what way is the assumption of a stable wage rate challenged by industrial concentration?
In what way is the assumption of a stable wage rate challenged by industrial concentration?
Why does the scattering of consumers pose a problem for Weber's location theory?
Why does the scattering of consumers pose a problem for Weber's location theory?
Which criticism addresses the unrealistic nature of Weber's assumption regarding labor?
Which criticism addresses the unrealistic nature of Weber's assumption regarding labor?
Which of the following real-world factors is LEAST considered in Weber's simplified transportation cost calculations?
Which of the following real-world factors is LEAST considered in Weber's simplified transportation cost calculations?
Flashcards
Weber's Calculation Criticism
Weber's Calculation Criticism
Weber's calculation assumes transportation costs are based only on weight and distance. In reality, costs depend on modes of transportation, quality of goods, and rates charged by transporters.
Weber's Labour Assumption Criticism
Weber's Labour Assumption Criticism
Weber assumed labour centers are fixed, but worker mobility exists.
Weber's Labor Supply Criticism
Weber's Labor Supply Criticism
Weber assumed unlimited labor supply and stable wage rates at fixed points but increased industry and concentration leads to increase labor rates.
Weber's Consumption Centers Criticism
Weber's Consumption Centers Criticism
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Unrealistic assumptions in Weber's theory
Unrealistic assumptions in Weber's theory
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Study Notes
- Key criticisms against Weber's theory involve unrealistic assumptions and arbitrary factor selection.
Unrealistic Assumptions
- Weber's calculation regarding transportation costs is based only on weight and distance.
- Transportation costs depend on modes of transportation, quality of goods transported, and the rates charged by various transporters.
- Weber's assumption that labor centers are fixed is unrealistic due to increased labor mobility.
- Unlimited labor supply at fixed labor centers is not realistic.
- Wage rates will not remain stable, because with industry concentration, labor rates will increase.
- The assumption of fixed consumption centers is untrue, because consumers of products are scattered.
- Is not possible to locate a fixed consumption center and therefore transportation costs cannot be located.
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