TRAINING QUESTIONS

1. How does the location of input sources and output markets determine the location behavior of the firm?

1.1.    How do changes in local land prices and labor prices affect firm location behavior?

1.2.    Explain von Thünen’s Discovery in the formation of patterns in German villages and the two factors that explains this pattern.

1.3.    Discuss Weber’s model of industrial location and state 2 main criticism of the model.