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.)...
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- Spring '09
- Economics, Marginalism, Von Thünen, J.H. von Thünen, Hermann Heinrich von Gössen, Hermann Heinrich von