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In: Economics

True, false or uncertain? Justify your response to each of the following statements. a) Tim Hortons...

True, false or uncertain? Justify your response to each of the following statements.

a) Tim Hortons carefully chooses where to locate its stores. Some locations, such as at the intersection of two streets, have a natural advantage because of a higher number of customers who walk by or drive by. Locations with such advantages produce higher profits in equilibrium

Solutions

Expert Solution

Location is one among the important factors which determines profitability of the organisation if it has to operate physically. Hence a location where a large gatherting is found, itself makes it an ideal location as it will be easier to grasp attention of the customers. Apart from this, location with such advantage is supposed to have better communication and transportation facilites which will reduce cost in transportation . Hence it is wise to choose it as a location to run his store.

Ans - TRUE

Rahul Sunny answered 2 years ago
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