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Economic Aspects (Cont.)
Ricardo Theory 1817
The type of farming found in an area will depend on either: ,[object Object],[object Object],[object Object]
[object Object]
In other words…. ,[object Object],[object Object],[object Object]
Von Thunen
Let me take you back to.. ,[object Object],[object Object],[object Object],[object Object]
Johann von Th ü nen ,[object Object],[object Object],[object Object]
CRITIQUE ,[object Object]
Model (assumptions…) ,[object Object],[object Object],[object Object]
Model (assumptions…) ,[object Object],[object Object],[object Object]
Model (assumptions…) ,[object Object]
CROPPING MODEL With increasing distance from a central market, farmers would grow different crops, producing a concentric pattern… The LOCATIONAL RENT of each crop: the difference between the market value per hectare and the costs per hectare of cultivation and transport to market. Because rents are higher near the market, farmers will intensify their production.
 
£ Distance from market Profit
Critique 1 ,[object Object],[object Object],[object Object]
Critique 2 ,[object Object],[object Object]

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Von Thunen And Co.

  • 3.
  • 4.
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  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13. CROPPING MODEL With increasing distance from a central market, farmers would grow different crops, producing a concentric pattern… The LOCATIONAL RENT of each crop: the difference between the market value per hectare and the costs per hectare of cultivation and transport to market. Because rents are higher near the market, farmers will intensify their production.
  • 14.  
  • 15. £ Distance from market Profit
  • 16.
  • 17.