In an industry where transportation costs are high and there are ...

[RODY.ELKHALIL]

In an industry where transportation costs are high and there are limited scale economies,
 
  A) firms will locate close to the market.
  B) firms will locate close to their input sources.
  C) firms might locate in either area.
  D) firms will locate where policy makers decide.

Question 2

Briefly describe orthodox stabilization policies.
 
  What will be an ideal response?

[IRincones]

Answer to Question 1

A

Answer to Question 2

Minimizes government involvement in the economy and prescribes government spending cuts, tax reform, and control over money supply growth to fight inflation