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Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. The following table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor scoring is 1 through 5.
FACTOR
WEIGHT
SITE SCORES
A
B
C
D
Quality of labor
10
5
4
Construction cost
8
2
3
1
Transportation costs
Proximity to markets
7
Taxes
6
Weather
Energy costs
a) Which site should Tracy choose?
b) If site D's score for Energy costs increases from a 3 to a 5, do results change?
c) If site A's Weather score is adjusted to a 4, what is the impact? What should Tracy do at this point?
Government provides three public goods that the market does not provide:
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