Correct option is B
Introduction
August Lösch's theory of industrial location explains the spatial distribution of economic activities through market areas and competition among producers.
Information Booster
Lösch's model is based on monopolistic competition, where producers compete while offering differentiated goods and serving distinct market areas. Firms seek locations that allow them to maximize profit and market coverage.
Additional Knowledge
- Lösch's theory was published in 1954 in The Economics of Location.
- It focuses on market areas, demand, profit maximisation and spatial competition.
- Unlike Christaller's central place theory, Lösch's approach is less restrictive and allows greater variation in market areas.
Correct Answer: (b) Monopolistic
English
10 Questions
20 Marks
12 Mins
