Electricity costs $0.10 per kilowatt-hour. How does it cost a family each year if they use 250 kilowatt-hours per month?
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Manufacturers try to locate their factors as close as possible to their inputs and markets to cut transportation cost. Other issues could be the availability of raw material, land, water, labor, power, capital, transport, and market. Examples of these manufacturers and/or industries would be the market for construction workers or “factor markets”. Industries and/or companies such as McDonald’s and other fast food chain, rely on these factor markets for materials to continue to expand and increase the economic growth and success.
