Industry Cost Curves and the Spatial Organisation of Production

John B Parr and John Swales ()

Scottish Journal of Political Economy, 1996, vol. 43, issue 3, 301-16

Abstract: The nature of production is examined for a particular class of economic activity at the level 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 equilibrium is specified for alternative forms of competition in the extraregional product market. Copyright 1996 by Scottish Economic Society.

Date: 1996
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Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

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