Firms generally choose to locate their production where profits are maximized. As costs affect profits, trade-offs between two marginal costs – employees' wages and transport costs – may be important for decisions regarding location. Wages tend to be greater in industrial centres and...

Firms generally choose to locate their production where profits are maximized. As costs affect profits, trade-offs between two marginal costs - employees' wages and transport costs - may be important for decisions regarding location. Wages tend to be greater in industrial centres and decrease as...