Question

Which of the following refers to the geographical separation between the producers and consumers?
1. Spatial separation
2. Separation in time
3. Separation in values
4. Separation of information

Answer 1

Correct Answer - Option 1 : Spatial separation

The correct answer is Spatial Separation

 1. Spatial Separation

• Producers and consumers are separated geographically. Producers tend to cluster together by industry.

2. Separation in Time

• Consumers may not want to consume goods at the time they are produced, and time may be required to transport goods from producer to’ customer.

3. Separation in Values

• Producers value goods and services in terms of cost and competitive prices. Consumers value goods and services in terms of utility and ability to pay. 

4. Separation of Information

• Producers do not know who needs, what, when, where, and at what price consumers don’t know what is available from whom, where, when, and at what price.