Economies of Scale, Transport Costs and Location 87 the willingness to share

the willingness to share

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Economies of Scale, Transport Costs and Location 87 the willingness to shareThe presence of nonconvexities does severe damage to conventional theories of the firm and of the individual. The essential contribution of location theory, however, is in a world in which there are such nonconvexities. If resources are distributed evenly and the usual convexity assumptions made, then economic activity would be distributed evenly; there would be no concentration of pro duction. Thus the statement that is usually made, that the