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LEONTIEF TECHNOLOGY AND THE LOCATION OF THE FIRM IN A WEBER TRIANGLE–SPECIFIC LOCALIZATION THEOREMS *
Author(s) -
Kusumoto ShoIchiro
Publication year - 1985
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1985.tb00312.x
Subject(s) - monotone polygon , vertex (graph theory) , constant (computer programming) , function (biology) , space (punctuation) , mathematics , mathematical optimization , mathematical economics , computer science , combinatorics , geometry , graph , evolutionary biology , biology , programming language , operating system
In special cases of the Leontief technology's constant input‐output coefficients, the general localization theorem that an interior location is a global optimum if every input or market vertex is not a local optimum [Kusumoto (1984)] is confirmed and strengthened. Sufficient conditions are proposed for the portion of a triangular space in which the firm will locate. Finally, it is shown that, if input substitution is permitted and its effects dominate spatial effects, the firm's total cost function will be monotone, as well as concave, hence the vertex is a global optimum if it is a local optimum.