economics Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes ...

, the economics of location is the study of strategies used by firms in a monopolistically competitive environment in determining where to locate. Unlike a

product differentiation In economics and marketing, product differentiation (or simply differentiation) is the process of distinguishing a product or service from others to make it more attractive to a particular target market. This involves differentiating it from co ...

strategy, where firms make their products different in order to attract customers, an ''economics of location'' strategy is consistent with firms producing similar or identical products.

See also