Question

The transportation model, when applied to location analysis: maximizes revenues. minimizes total fixed costs. minimizes total production and transportation costs. minimizes total transportation costs. minimizes the movement of goods.

Answer 1

Correct Answer:

4. minimizes total transportation costs.

Step-by-step explanation:

When a good transportation method is applied, it helps in minimizing the transportation cost involved in moving goods and services from one location to another. For example, it cost 2 million dollars to transport a particular product. With good transportation model, it would definitely be cheaper.