According to the central place theory, which statement is true?

• A. Settlements serve as 'central places' providing goods and services to surrounding areas.
• B. All settlements are equally spaced and have the same population size.
• C. Central place theory explains only agricultural production patterns.
• D. The theory assumes that transportation costs are irrelevant to settlement location.

Answer: (A)

Verified step by step guidance

1. Understand the central place theory: It is a spatial theory in microeconomics and geography that explains the size, number, and distribution of human settlements in an urban system.
2. Identify the role of settlements in the theory: Settlements act as 'central places' that provide goods and services to the surrounding population in a hierarchical manner.
3. Evaluate the spacing and population size assumption: The theory does not assume all settlements are equally spaced or have the same population size; rather, it predicts a hierarchical pattern with varying sizes and spacing.
4. Consider the scope of the theory: Central place theory primarily explains the distribution of services and settlements, not just agricultural production patterns.
5. Assess the role of transportation costs: The theory explicitly assumes transportation costs are important and influence the location and size of settlements, contrary to the statement that they are irrelevant.