Anodyne
Friday, August 27, 2010
 

Partial answer to an exam practice question for Urban Land Economics 300, hosted here for a few days so my course tutor can look at it:

Bid rent functions for carrots and tomatoes, using Equation 5.7 from the text:

r(carrots) = 60 (p/carrots) * 1 - 10 / 1 - 5 (cost/transport) * 1 / 1 * d
r(tomatoes) = 40 (p/tomatoes) * 1 - 10 / 1 - 1.5 (cost/transport) * 1 / 1 * d

Simplified:

r(carrots) = 50 - 5d
r(tomatoes) = 30 - 1.5d

To solve for maximum distance from city, bid rent equation must = 0, thus d(carrots)=10km, and d(tomatoes)=20km

To find the boundary between the agricultural activities, locate the point where the bid rent functions intersect.

Thus: 50 - 5d = 30 - 1.5d
20 = 3.5d
d= 5.714km

The boundary between the agricultural zones is 5.714km.

Km 20 is the boundary between the outermost agricultural zone and the hinterland, where the return from tomato farming drops to 0.

I'm terrible at making graphs, so I drew one by hand, photographed it, and put it up on my blog.


- posted by cjb @ 10:20 PM


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