Weber's Theory of the Location of the Firm

Discipline: Economics

Formulated by German economist and sociologist ALFRED WEBER (1868-1958), Weber's theory of the location of the firm states that the location of firms is determined by attempts to minimize costs.

Thus, if production costs are the same everywhere, transport costs will govern the choice of location.

Also see: central place theory, gravity model, least cost location theory, location theory

Source:
A W Weber, Theory of the Location of Industries (Chicago, 1929)

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