According to Alfred Weber, what is the formula for 'Labour Cost Index'?

Correct option is D

According to Alfred Weber's theory of industrial location, the Labour Cost Index is calculated using the formula:

This index measures the proportion of labour costs relative to the weight of finished goods. It helps determine the impact of labour costs on the location of industries. If the labour cost index is high, it indicates that labour cost constitutes a significant part of the total cost, influencing firms to locate in areas with cheaper labour.
Information Booster:
· Alfred Weber developed the Least-Cost Theory, which emphasizes minimizing transportation, labour, and agglomeration costs.
· Labour-intensive industries are more sensitive to variations in the Labour Cost Index.
· A higher Labour Cost Index indicates the need for industries to locate closer to areas with affordable labour.
· Industries with low Labour Cost Index focus more on minimizing transportation costs.
· This index is crucial for industrial decision-making and location analysis.