Chapter 2 The location of production activities

摘要: Publisher Summary This chapter discusses the issue of location for production activities. In general, availability resources, population as a source labor and potential markets, soil, climate, technical conditions rule out many locations any specific economic activity. What remains is set feasible among which an choice to be made. The main problems facing theorists can listed spatial demand supply; pricing output; locational choice; resource (land) use; equilibrium production. analysis monopoly. It describes structure three different price policies: mill, uniform, (spatial) discriminatory pricing. compares these policies in context two firms competing attract customers, termed “spatial duopoly.” strategic interdependence between may generate serious difficulties regarding existence (noncooperative) equilibrium.. also deals with concept oligopoly homogeneous space. |It considers only mill solution concepts: Bertrand (competitive oligopoly), Losch (collusive Cournot quantity equilibrium.