Which answer is incorrect about localization economies?

a) Firms tend to cluster their facility productions closed to their suppliers because of saving in transportation costs.

b) Localization economies result from the scale of the entire community economy, which are generated the benefits of firms.

c) When there is an uncertainty situation, firms prefer to cluster among other companies with higher wage because of the lower switching cost of worker.

d) There is some opportunity for the firm to share the technology while they locate near similar industries. This will help firms to reduce their costs for developing new products.

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You have been hired to do the payroll for a small software development start-up company in Kanata, Ontario with 3 employees. This is one of several clients you have. The payroll must be done on certain days of the month (pay days) but you can process the payroll at any time during the day on these pay days. You have the choice of processing the payroll from home or going into the office to process the payroll. You and the company have agreed to be paid $80 per month to process the payroll for the month (for all pay cycle types). The company will pay the remittances but you simply need to let them know the amounts to pay. Employee 1 - Sakura Tanaka (Sales and Marketing) Paid semi-monthly Has a company owned automobile Employer retains vacation No vacation taken during July Employee 2 - Susan Campbell (Software/Hardware Developer) Paid bi-weekly Works 40 hours per week Employer retains vacation No vacation taken during July Has been paid 13 times until the end of June Has $20 extra deducted for federal income tax per pay. Employee 3 - Jeremy Karr (Manager) Paid monthly Works 40 hours per week Employer retains vacation No vacation taken during July General information: Saa naurall tah Employer retains vacation No vacation taken during July General information: See payroll tab. Year-to-date amounts for CPP pensionable earnings, CPP, El insurable earnings and El are up to June 30 (Beginning numbers). All employees started working for the company in 2020. No employees have been or will be paid for overtime or any other additional payments other than their regular salary. All employees claim the basic personal amount for tax purposes. The only deductions off employees pay are statutory deductions. All current employees are between the ages of 20 - 60. You have been hired to do the payroll for a small software development start-up company in Kanata, Ontario with 3 employees. This is one of several clients you have. The payroll must be done on certain days of the month (pay days) but you can process the payroll at any time during the day on these pay days. You have the choice of processing the payroll from home or going into the office to process the payroll. You and the company have agreed to be paid $80 per month to process the payroll for the month (for all pay cycle types). The company will pay the remittances but you simply need to let them know the amounts to pay. Employee 1 - Sakura Tanaka (Sales and Marketing) Paid semi-monthly Has a company owned automobile Employer retains vacation No vacation taken during July Employee 2 - Susan Campbell (Software/Hardware Developer) Paid bi-weekly Works 40 hours per week Employer retains vacation No vacation taken during July Has been paid 13 times until the end of June Has $20 extra deducted for federal income tax per pay. Employee 3 - Jeremy Karr (Manager) Paid monthly Works 40 hours per week Employer retains vacation No vacation taken during July General information: Saa naurall tah Employer retains vacation No vacation taken during July General information: See payroll tab. Year-to-date amounts for CPP pensionable earnings, CPP, El insurable earnings and El are up to June 30 (Beginning numbers). All employees started working for the company in 2020. No employees have been or will be paid for overtime or any other additional payments other than their regular salary. All employees claim the basic personal amount for tax purposes. The only deductions off employees pay are statutory deductions. All current employees are between the ages of 20 - 60.

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Answer b Localization economies result from the scale of the entire community economy wh... View the full answer