Invitation Wording In Tamil

national economic region ideal model

August Lösch model produces a spatial economy in imperfect competition in which the space is a fundamental variable. Develops the concept of economic region, through the definition of market area as a series of postulados.Considera this author, as a starting point, a continuous and homogeneous space with uniform costs, and also uniformly distributed population, comprising identical individuals in income and tastes. Producers and consumers respectively maximize benefits and there is a single utilidad.Si producer and decide to sell at a "p" to consumers residing right next to it would have to go up that price, depending on transport costs to be incurred at the time of sale in more geographically remote locations.

If the demand curve that producer price is p ', which corresponds to transport costs (p'-p), the quantity demanded would be zero. Thus, would supply a circular market area of \u200b\u200bradius equal to the distance corresponding to the transport cost equal to (p'-p). If we consider the existence of more producers, the area becomes circular hexagonal described as circular areas represent the existence of small geographical areas not served by any producer. The hexagonal network is inefficient, and exhausting all of the area generated assets other networks servida.Otros hexagonal superimposed on the initial market areas which are of different sizes depending on the variation of the economies of scale in production and transport costs of different bienes.La "ideal economic region," according Lösch, it is the result of spatial concentration according to which all networks have a common production facility
. The spatial concentration of activities is the conclusion arrived at by this author, even if your basic assumption, remember, the even distribution of production factors and the population over all space.