In Central Place Theory, what does threshold refer to?

• A. Maximum distance consumers will travel to obtain a service
• B. Minimum market size required to support a service
• C. Number of service locations in a region
• D. Average income of customers

Answer: (B)

Threshold in Central Place Theory is about the minimum market size or population needed to support a service. If there aren’t enough potential customers to cover costs, the service won’t be viable, so the location won’t attract it. The required size varies with the type of service and its price—more expensive or specialized services need larger customer bases. This concept helps explain why some services are common and nearby (low threshold) while others are rare and more widely spaced (high threshold). It’s not about how far people will travel (that’s range), nor about how many locations exist or the customers’ income. The statement that best fits is the minimum market size required to support a service.