Question

Why do we have barbers in all cities but brain surgeons in large cities?

Answer 1

The main reason that determines the location of a particular service is attraction to the consumer market. If a particular service is rendered frequently to individuals of all classes in a community then it will be located in the midst of its clientele in immediate contact with it. This fact holds true for barbers, there is demand for barbers to individuals of all classes in a community, therefore, they are found in all cities. But demand for some services is determined by the factor that there is a difference in the intensity of demand for different types of services, therefore, this leads to the removal of such services away from the village and smaller towns to the larger towns or from urban neighborhoods within the big urban areas to the central business district. Therefore, brain surgeons are located in large cities. Also, all the developmental efforts that allow a service to establish direct contact with its customers more cheaply & more quickly makes it possible for it to choose locations further away. So, there are different reasons which are instrumental for the establishment of a particular service in particular location.