According to Weber, where should the industry be set up to maximize profit when the material index is one?

Correct option is C

Between the two is the correct answer. According to Alfred Weber's theory of industrial location, when the material index (the ratio of the weight of raw materials to the weight of the finished product) is one, the weight of the raw materials and the finished product are equal. In such a case, the industry can be located at an intermediate point between the raw material source and the market to minimize total transportation costs, as there is no weight advantage on either side.
Information Booster:
· Material Index = 1: Indicates a balance between raw materials and finished products in terms of weight.
· Weber’s theory seeks to minimize the combined cost of transport, labor, and agglomeration.
· In this case, the industry doesn't favor proximity to either the market or the raw material source exclusively.
· Transportation cost minimization is achieved by locating between the two.
· This concept applies to industries dealing with ubiquitous or uniformly distributed materials.
Additional Knowledge:
· At the source of raw material: Suitable when the material index is greater than one (raw materials are heavier than the finished product).
· In the market: Optimal when the material index is less than one (finished products are heavier or bulkier).
· Anywhere away from the market: Incorrect, as it contradicts Weber's principle of transportation cost minimization.