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INDUSTRY COST CURVES AND THE SPATIAL ORGANISATION OF PRODUCTION
Author(s) -
Parr John B.,
Swales J. K.
Publication year - 1996
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/j.1467-9485.1996.tb00847.x
Subject(s) - production (economics) , economics , competition (biology) , product (mathematics) , scale (ratio) , econometrics , production cost , class (philosophy) , microeconomics , economies of scale , industrial organization , operations management , mathematics , computer science , engineering , geography , geometry , cartography , mechanical engineering , ecology , artificial intelligence , biology
A bstract The nature of production is examined for a particular class of economic activeiy at the scale of the region. Average cost conditions at the plant level are specified, from which the long‐run average cost curve of the regional industry is derived. Attention is then drawn to certain features of this curve, including the upward‐sloping form over part of its length. Consideration is also given to different types of adjustment over various time horizons. Finally, for a regional industry under unified control, long‐run equilbrium is specified for alternative forms of competition in the extraregional product market.