In a competitive market where only output price is uncertain, risk averse producers always respond positively to a better protection against downward price fluctuations. In this note, the authors analyze the robustness of this result when there is more than one source of risk. Copyright 1989 by...

The theory of the urban firm has been moribund for thirty years. We believe this is due to the perception that the theory cannot generate testable hypotheses. In fact, the theory yields unambiguous comparative static results. We find location and land use directly related to product price and...