This preview shows page 1. Sign up to view the full content.
Unformatted text preview: basics of the theory of marginal productivity in his model of agricultural land. In the various editions of his The Isolated State (1826-1863), von Thünen concluded that, holding yield constant, the amount farmers willing to pay for a piece of land falls with increasing distance from the market. Thus, location determines rent. (Note: August Losch also worked on the economics of location and concluded that the distance-minimizing geometric shape of the territories most firms control when concentrated in a high traffic area for business is hexagonal.)...
View Full Document
This note was uploaded on 01/12/2010 for the course ECON 434 taught by Professor Byrns during the Spring '09 term at UNC.
- Spring '09