Unit 7 Flashcards
Industry (process)
Process of using machines and large scale processes to convert raw materials into manufactured goods
How did cities transform as a result of industrialization
Cities swelled in population, and railroad/transportation changes allowed cities to grow in size
What are 3 assumptions economic models make?
- Businesses want to make money/maximize profits
- People want to dominate over their competitors
- Variable costs will be taken into account
Friction of distance
The increase in time and cost that comes with increasing distance
Distance Decay
Further you are away from something, the less a certain phenomenon has effect
Weber’s least cost theory
Factory owners will locate factories where they can balance transportation costs, labor costs, and maximize agglomeration economies
Agglomeration
Location next to each other to share benefits
Isotropic plain
Uniform topography, climate, technology, and economic system
Bulk-losing industries
Item gets smaller as item is produced
Bulk-gaining industries
Item gets larger as it is produced
Labor dependent industry
Industry that is highly dependent on a nearby source of labor, while industries that require higher education locate near universities
Location interdependence
Location of industries are influenced by other similar franchises
Profit-maximization means…
Firms will identify a zone of profitability
Development
Specified state of growth
Development
