RAS question
Consider the following statements about industrial location theories: 1. Alfred Weber's Least Cost Theory of industrial location identifies transport cost, labour cost, and agglomeration economies as the three key factors that determine where an industry locates. 2. According to Weber, the weight-losing industries (where raw materials are heavier than the finished product) tend to locate near raw material sources. 3. August Losch developed a Profit Maximisation approach to industrial location, focusing on market areas and the demand side rather than only minimising costs. 4. Weber's theory assumes perfect competition, uniform raw material distribution, and fixed consumer markets. Which of the above statements are correct?
Correct answer: (B) 1, 2 and 3 only.
In Weber-Losch industrial location theory, statements 1, 2 and 3 are correct: Weber’s least-cost model stresses transport cost, labour cost and agglomeration, while weight-losing industries favour raw-material locations and Losch shifts the focus to demand-side profit maximisation.
Explanation
Weber’s least-cost theory begins with transport cost as the main location force, then allows labour cost and agglomeration economies to pull an industry away from the purely transport-optimal site. For weight-losing industries, the raw material is heavier than the finished product, so locating near the raw-material source reduces the cost of moving the heavier input. Losch’s approach moves the discussion beyond cost minimisation by emphasising demand in location analysis and favouring profit maximisation over the earlier least-cost approach. Statement 4 is the trap. Weber assumes raw-material locations and consumption points are given or fixed; he does not assume a uniform spatial distribution of raw materials.
Why the other options are wrong
- (A) Option A omits statement 3, although Losch’s theory is correctly described as a demand-side, profit-maximisation approach rather than a mere least-cost model.
- (C) Option C omits statement 1, even though Weber’s least-cost theory does treat transport cost, labour cost and agglomeration economies as the key locational influences.
- (D) Option D includes statement 4, but Weber assumes fixed raw-material sources and fixed consumption points, not a uniform distribution of raw materials.
Concept
This tests industrial location theory, especially the shift from Weber’s least-cost reasoning to Losch’s market-area and profit approach. RAS asks it because geography questions often hinge on exact assumptions, not just names of theorists.