Summary: Urban Economics And Real Estate
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Read the summary and the most important questions on Urban economics and real estate
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1 H1 Who do cities exist?
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Through the introduction of plains and social media the role of location...
Decreased -
1.1 Scale economies
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What is a scale economie?
Increasing return(rendement ) due to bigger scale because the average costs decrease -
What are the sources of scale economies in production?
Factor specialization (Adam Smith)Indivisibility ofinputs , you need a minimum scale to produce something
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What does economies of scale mean?
- Concentration even
tho land rent is higher - Factory production is more
efficient than home production
- Concentration even
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What are the sources of scale economies in transport?
- Technological change --> combine shipments -
How does economies of scale in transport work?
Transport of a ship is very expensive. Because of this you combine shipments. When the volume increases the cost per product/container decreases. Trade and transport companies will emerge. -
How does a factory town emerges?
- Workers want to
economize oncommuting so they live close to the factory
- Workers want to
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Location of factory town?
- Close to inputs
- Driving up density and land prices
- Close to inputs
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When do factory cities grow?
- If
economies of scale become more important - Transport becomes more
efficient
Typical of cities thatemerged during industrial revolution - If
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How does a trading city emerge?
- Workers want to economize on commuting so they live close to transport firms
- Workers want to economize on commuting so they live close to transport firms
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