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Understanding Alfred Weber's Least-Cost Theory for Spatial Cost Determination

Explore Alfred Weber's influential Least-Cost Theory, which factors in transportation, labor, agglomeration, and deglomeration to determine spatially variable costs in industries. Discover scenarios of weight-gaining and weight-losing industries through practical examples like copper mining and beer brewing. Uncover the implications, considerations, and limitations of Weber's Theory, along with insights into Hotelling's Theory.

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Understanding Alfred Weber's Least-Cost Theory for Spatial Cost Determination

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  1. Alfred Weber Least-Cost Theory

  2. Alfred Weber (1868-1958)

  3. Least-Cost Theory

  4. Least-Cost Theory http://people.hofstra.edu/geotrans/eng/ch7en/conc7en/weberlocationtriangle.html

  5. Least-Cost Theory

  6. Assumptions

  7. Assumptions

  8. FactorsWith these assumptions, the location is driven by four factors to determine spatially variable costs. Transportation, Labor, Agglomeration, Deglomeration

  9. Transportation

  10. Labor

  11. Labor

  12. Agglomeration

  13. Deglomeration

  14. Weight-Gaining and Weight-Losing

  15. Weight-Losing Scenario

  16. Location 1

  17. Location 2

  18. Location 3

  19. Example: Copper Industry in North America The Lavender Pit Copper Mine in Bisbee, Arizona operated between 1951 and 1974. Fig. 11-8: Copper mining, concentration, smelting, and refining are examples of bulk-reducing industries. Many are located near the copper mines in Arizona.

  20. Weight- Gaining Scenario

  21. Location 1

  22. Location 2

  23. Location 3

  24. Example: Location of Beer Breweries Fig. 11-11: Beer brewing is a bulk-gaining industry that needs to be located near consumers. Breweries of the two largest brewers are located near major population centers.

  25. How to Use Weber’s Theory

  26. Other considerations and limitations for Weber’s Theory

  27. What if the costs are all the same?

  28. Hotelling’s Theory

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