Govermment in most cases influences the location of firms to?

A. discourage private investors
B. ensure equitable distribution
C. reduce the cost of production
D. make the firms enjoy economies of scale

Correct Answer:

Option B = ensure equitable distribution

Explanation

Governments influence the location of industry, by giving tax incentives, cheap rent, and other benefits to companies locating in certain areas of the country. These are often done in places which the government wants to develop economically.