Spatial Invariance Under Input Monopsony

The spatial invariance theorem states that if the production function is homothetic, then the optimal plant location and the optimal input ratio are independent of the output level, and so any location that is optimal for one output level is optimal for all output levels.The purpose of this paper is to examine the validity of the spatial invariance theorem under the input monopsony. We conduct a comparative static analysis within the context of the WeberMoses triangular framework.