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Thünen's Rent Functions

(http://faculty.washington.edu/krumme/ )


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Three sets of symbols have been used to present the von Thünen rent functions. One is based on German (and August Loesch's) expressions (and widely used in text books), the second on English terms, the third is uniquely Hoover's (Introduction to Regional Economics [Ch.6]).

R = E (p - a) - Ekf (German [incl. Stutz, p.265])
R = Y (p - c) - Yfm (English [incl. Krumme])
R = Q (P - TC) - Qtx ( Hoover [incl. Appendix])

VariableGerman Symbols English Symbols Hoover's Symbols
Rent (per unit of land) R (Rent) R R
Yield (per unit of land) E (Ertrag) Y (Yield) Q (Quantity)
Price (farmer receives at the market) p (Preis) p (price) P
Average Production Costs (per Unit of Yield) a (Ausgaben)c (cost of production) TC=F+aQb (Total Costs= Fixed Costs + Variable Costs)
Distance from Market k (Kilometer) m (Miles) x
Freight rate per unit of Yield and Unit of Distance f (Fracht) f (freight) t (transfer costs)



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