Question

Why is the 'least cost' known as decision making factor for ideal location of an industry? 

Answer 1

Every business works on one basic principle Minimum Cost and Maximum Profit. Organizations opt for finding the resources that cost them as low as much possible.  This helps them to produce at cheapest cost and offer a competitive price to the consumers.  

Therefore, whenever any industry is to be started or established, the key decision criteria is LEAST COST in terms of wages, resources, transportation etc. Employers seek to start the industries at the places where the cheapest possible labor is available, resources are cheap in price and industry doesn’t have to incur a huge amount in transportation as well.