Production in Urban Environments

Oded Hochman and Ori Zax

CESifo Economic Studies, 2023, vol. 69, issue 1, 61-68

Abstract: We analyze an urban economy with free entry of firms in which prices differ across locations. We show that in a competitive equilibrium, land rent is determined such that firms produce at constant returns to scale point—at minimum average costs. (JEL codes: R32 and R38)

Keywords: agglomeration; constant returns to scale (search for similar items in EconPapers)
Date: 2023
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