• What factors determine the best (most profit) location for a consumer service?
• Tertiary sector includes:
o Business services.
o Wholesaling (distribution)
o Hospitality ( domestic)
• Build the exchange function of the economy.
• *central place: A market center where goods and services are available.
• Market area: geographic extent or area surrounding the central place, from which customers are attracted to enter.
• Threshold: minimum lvl of sales necessary to sustain a business.
• Range (0f a good): maximum distance a consumer is willing to travel to by a particular good.
• Order: ranking of a good based on threshold size.
• Different goods have different ranges and thresholds:
o 1. Low order goods: small range; inexpensive, purchased most often.
o 2. Higher order goods: large range; more expensive; purchased very infrequently.
• The hierarchy of goods ( central places) are based on the threshold size ( high to low order)