Economic Rent
ER = p - c
Economic Rent and the Location of Agricultural Production
Ricardian rent
Land Rent and Environmental Quality
Location Rent
Von Thünen
LRij = Qi (pi - ci) -Qi fi kj
LR is the location rent of growing crop i at place j.
Qi is volume of production.
pi and ci are the price and cost
fi is the transport cost per unit of distance.
kj is the distance between the place of crop production and the market.
Location Equilibrium
The Von Thünen model and Location
Equilibrium
Bid-Rent
Numerical example
Locational Shifts
Assignment for Monday
Read pp.224-232 Come to class with a basic understanding of the following: selection, assembly, production, distribution, use value, value added by manufacturing, uneven distribution of manufacturing.
