2Review: 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.
5Historical 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.
6The 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.
7The 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!
8Bid-Rent CurveAs distance from city center increases, cost of land goes down.
9The 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.