Which of the following factors were taken into account in Weber's least cost theory ?
A. Raw Material
B. Market
C. Transport Cost
D. Capital
E. Ethics
Select the correct answer from the code given below :

Question

Which of the following factors were taken into account in Weber's least cost theory ? 
A. Raw Material 
B. Market 
C. Transport Cost 
D. Capital 
E. Ethics 
Select the correct answer from the code given below :

Accepted Answer

Only A, B and C are correct. Here's why:

Weber's Least Cost Theory, at its core, focuses on minimizing costs associated with industrial location. The primary factors he considered were:

*   **A. Raw Material:** The location of raw materials, especially weight-losing or ubiquitous materials, significantly impacts transportation costs. Industries tend to locate closer to raw material sources to reduce these costs.

*   **B. Market:** The location of the market (where the finished goods are sold) is crucial. Industries might locate closer to the market to reduce the cost of transporting finished goods.

*   **C. Transport Cost:** This is the central element of Weber's theory. He analyzed how transportation costs of both raw materials and finished goods influence the optimal location of an industry.

Now, let's see why the other options are incorrect:

*   **D. Capital:** While capital is undoubtedly important for any industry, it wasn't a *direct* factor in Weber's *least cost* model. Weber's model primarily focused on minimizing transportation and labor costs. Capital availability might influence the *feasibility* of a location, but it's not a core component of the *cost minimization* he was analyzing.

*   **E. Ethics:** Ethical considerations are not part of Weber's least cost theory. The theory is purely economic and focuses on cost minimization, not on ethical or social factors.

Therefore, only Raw Material, Market, and Transport Cost (A, B, and C) are the factors directly considered in Weber's Least Cost Theory, making Option 2 the correct answer.