This paper attempts to incorporate a production function with input substitution into the Smith model and to re-examine the basic properties and the shape of space cost curve. It has shown the space cost curve will be (i) concave from below in the distance plane, when the transport rate is...

This paper examines the role of variable transportation rates on the independence between optimum location and demand. When transportation rates are a function of quantity and distance, it shows that the independence between optimum location and demand crucially depends upon whether the...

This paper examines the impact of non-uniform linear demand on plant location under FOB mill pricing. It shows that the principle of median location and the Rydell principle fail to apply, and some well-established results in plant location theory no longer hold when demand is linear but...

This paper shows that it is not appropriate to consider increasing returns to scale in the location theory of the firm, when the production function is assumed to be concave. The paper assumes that the production function is quasi-concave. If the marginal revenue curve cuts through the marginal...

The purpose of this article is to reexamine two important propositions in the familiar rock bottom model. By using simple and more straightforward comparative static and dynamic analyses, the following statements can be made: (1) if capital stock is constant and the system is stable,...