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Location Theory
a model used to explain the location of economic activity and where specialization occurs
Von Thunen’s Location Theory
A theory explaining agricultural location based heavily on transportation costs and distance form the market
Location Rent
The maximum profit that can be obtained from growing the most profitable crop on a parcel of land
Margin
The distance from the market at which profit/location rent = $0
Yield
The amount/weight/volume of agricultural product produced per unit of land
Freight Rate
The transportation cost per unit of distance
Land Use Intensity
Yield per acre
Homogeneous Plain
An assumed area where geographic/environmental conditions are essentially the same
Distance Decay
As distance increases, interaction generally decreases