Production in Urban Environments
Abstract We analyze an urban economy with free entry of firms in which prices differ across locations. We show that in a competitive equilibrium, land rent is determined such that firms produce at constant returns to scale point—at minimum average costs. (JEL codes: R32 and R38)
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| Veröffentlicht in: | CESifo economic studies 2023-03, Vol.69 (1), p.61-68 |
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| Hauptverfasser: | , |
| Format: | Artikel |
| Sprache: | eng |
| Online-Zugang: | Volltext |
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| Zusammenfassung: | Abstract
We analyze an urban economy with free entry of firms in which prices differ across locations. We show that in a competitive equilibrium, land rent is determined such that firms produce at constant returns to scale point—at minimum average costs. (JEL codes: R32 and R38) |
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| ISSN: | 1610-241X 1612-7501 |
| DOI: | 10.1093/cesifo/ifad003 |