Question

Based on the following information, determine the location quotient for Amusement City and whether this city has a competitive advantage in the amusement industry: employment in amusements and recreation in Amusement City: 54,446; total employment in Amusement City: 578,477; employment in amusements and recreation (nationally): 1,381,377; total employment (nationally): 106,201,232.
a. 0.23; No, the city does not have a competitive advantage in this industry.
b. 4.43; No, the city does not have a competitive advantage in the industry
c. 0.23; Yes, the city has a competitive advantage in this industry
d. 4.43; Yes, the city has a competitive advantage in this industry

Answer 1

Answer:

a. 0.23; No, the city does not have a competitive advantage in this industry

Explanation:

Calculation to determine the location quotient for Music City and whether this city has a competitive advantage in the entertainment industry

Location quotient for Music City= (3020/ 656,785)/ (2,160,970/ 106,201,232)

Location quotient for Music City=0.004598/0.020347881

Location quotient for Music City= 0.225

Location quotient for Music City= 0.23 (Approximately)

Based on the above calculation the city does NOT have a competitive advantage in this industry.