2 Review: What is a model?Models are examples that help us better understand a major concept or idea.Models are NOT exact and are flexible.Models are NOT perfect.Models might look different in reality than the do in theory.
5 Historical Background “A Portion of Each Crop is Eaten By the Wheels!”- von Thunen. Germany, 1820’s.Developed by Johann Heinrich von Thunen in the early 1800’s (19th century)Based on the layout of Rostock, GermanyNoticed a pattern of 4 rings developed around the central city.Each ring was a different type of agriculture.Created before highways, railroads, factories, etc.
6 The Big Idea!Farmers grow certain crops closer to the market (aka central city) while others are grown farther away.Why? It’s all about the Benjamin$, baby!Decision to grow certain crops in certain places is based on profit.
7 The Formula Profit= Market Price – Production Costs Production costs include cost of labor, equipment, and TRANSPORTATION!Factor 1: The bulkier the product, the more it costs to transport.Factor 2: The more perishable a product, the closer to the market it has to be.Factor 3: The more land a product needs, the farther from the central city it should be (land closer to city is more expensive)All of these must be considered when deciding what to grow where!
8 Bid-Rent CurveAs distance from city center increases, cost of land goes down.
9 The Rings Ring 1: Dairy/ Commercial Gardening Easily perishable goods Located too far, goods go bad, no profitRing 2: Forest (building material/ fuel)Not perishable but very heavy!Ring 3: Extensive Crops (grains)Not as heavy as wood, can be stored for longer periods of time.Ring 4: LivestockNeeds a lot of landPerishable once slaughtered, but animals can transport themselves!Beyond the rings: WildernessToo far from city, to expensive to transport anything.