Agriculture- Von Thunen Theory

2.

If two crops have the same production costs and yields, but A has higher transport costs and a higher market price than B, which crop will be grown closer to the market?
- Crop A
- Crop B
- It would depend on the total revenue earned
- It would depend on the total cost per unit – the total market price per unit
Correct Answer

A. Crop A

Explanation

If two crops have the same production costs and yields, but Crop A has higher transport costs and a higher market price than Crop B, it is more likely that Crop A will be grown closer to the market. This is because despite the higher transport costs, the higher market price of Crop A would result in higher profits for the farmers. Therefore, it would make economic sense for the farmers to grow Crop A closer to the market to minimize transportation expenses and maximize their revenue.

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3.

According to the location rent theory, location of different crops are determined by:
- Production costs, wages, availability of land
- Production costs, land tenure and competition at the market
- Production costs, government policy and yields per hectare
- Production costs, yields per hectare and market prices
Correct Answer

A. Production costs, wages, availability of land

Explanation

According to the location rent theory, the location of different crops is determined by production costs, wages, and the availability of land. This means that farmers will choose to grow crops in locations where production costs are low, wages are affordable, and there is enough land available for cultivation. The theory suggests that these factors play a significant role in determining the profitability and viability of growing crops in specific locations.

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4.

According to Von Thunen intensity of production model if the farmer’s crop is being cultivated closer to the market, and he intensifies his production:
- He will experience economies of scale
- He will experience diminishing returns
- His returns will be greater if he adopts a more extensive method of cultivation
- His intensity of production will decline by extensive methods of cultivation
Correct Answer

A. He will experience diminishing returns

Explanation

The correct answer is "He will experience diminishing returns." According to Von Thunen's intensity of production model, as the farmer cultivates his crop closer to the market, he will experience diminishing returns. This means that the additional output or yield gained from each additional unit of input or effort will decrease. This is because the closer proximity to the market allows for easier and more frequent access to resources and inputs, resulting in higher initial productivity. However, as the farmer intensifies his production, he will reach a point where the returns start to diminish, as the resources become more scarce or less effective in increasing output.

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5.

Von Thunen created variations to his model making it more complex by adding:
- A river to aid transport
- Physical features to reduce the costs of production and focus the land use pattern
- Introducing a smaller city with its own land use pattern
- All of the above
Correct Answer

A. Physical features to reduce the costs of production and focus the land use pattern

Explanation

Von Thunen's model originally focused on the relationship between distance from the market and the types of agricultural activities. By adding physical features to the model, such as mountains or forests, he introduces the concept of reducing production costs and influencing the land use pattern. These physical features can affect transportation costs, soil quality, and accessibility, leading to different land use decisions by farmers. Therefore, the addition of physical features in Von Thunen's model helps to explain how the natural environment can shape agricultural land use.

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1

Agriculture- Von Thunen Theory

Von Thunen’s model is outdated because:

Quiz Preview

If two crops have the same production costs and yields, but A has higher transport costs and a higher market price than B, which crop will be grown closer to the market?

According to the location rent theory, location of different crops are determined by:

According to Von Thunen intensity of production model if the farmer’s crop is being cultivated closer to the market, and he intensifies his production:

Von Thunen created variations to his model making it more complex by adding: