The Von Thunen model is used on agricultural land use.

Using the Von Thunen model to answer questions on agricultural land use.

Agricultural Land Use. The Von Thunen model Problem.

From the data provided in table 1, determine the economic rent for each commodity at a distance of 0,100 and 200 km from the market center.

Table 1

Commodity

Dairy
Market (units): 200
Yield (price/unit): 0.78
Production (cost/unit): 0.52
Transport (rate/unit/100kms): 0.20

Veg
Market (units): 100
Yield (price/unit): 0.68
Production(cost/unit): 0.31
Transport (rate/unit/100kms): 0.10

Grain
Market (units): 50
Yield (price/unit): 0.60
Production(cost/unit):0.04
Transport (rate/unit/100kms): 0.05

formula Er=Y(M_C)-Y.D.T
where
e=economic rent
y=yield per unit of land
m=market price per unit of production
c=production cost per unit of production
d=distance from market center
t=transport rate per unit of product, per unit of distance

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...D*T).
Y = yield per unit of land
m = market price per unit of production
c = production cost per unit of production
d = distance from market center
t = transport rate per unit of product, per unit of distance

Note that the transport rate values in Table 1 are given per unit per 100 ...