2- Location of Agricultural Products: Von Thünen
Location of Agricultural Products The subject of location of agricultural products is based on Johann Heinrich Von Thünen's model. Summary of the Model The initial model of Von Thünen's “Isolated State” takes for granted that: A single city is located at the center of an "isolated state" and is the only market (point) for agricultural products. Isolated state means there is no international trade. The state consists of a plain that is uniform in physical terms (soil, climate, topography, fertility, etc.). Transport conditions are the same in all directions. There are no roads. Prices are fixed to the city and do not change. Producers are motivated by maximizing their profit. Land rent (profit) for a product i at a distance d from the market is: R i = (p i - c i ) - T i * d R i : land rent (profit) p i : product i market price per area unit c i : production cost of i per area unit ...