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Who was Johann Heinrich von Thünen?🧐
- Thünen was a wealthy German farmer who was also a very skilled economist.
- While observing the Second Agricultural Revolution, he picked up on a pattern through his own financial records.
- These observations were then written in his 1826 book The Isolated State, where he described the pattern of agricultural land use around an imaginary central city.
- He then transformed those observations into a model now known as the Von Thünen model.
- Now let’s get to work on Von Thünen’s model!
What is the Von Thünen Model?🔎
- The Von Thünen model is a model which shows the pattern of agricultural land around a centralized point through a circle.
- Now, the key to understanding this model is to comprehend that the model is that the land use of each area is determined the labor intensity of the use.
But What Do The Rings Mean?🤷
- So, what the rings indicate is that the closer the agricultural land is closer to the centralized point (market), the more labor-intensive it is likely to be.
- Shown below are the different land uses ranked from most to least labor-intensive and the labor activities needed for each:
*The numbering of the chart is also done from the smallest, innermost circle to the largest, outermost circle.
What Else Do These Rings Tell Us Though?😕
- Well, what the placement of the rings also tell us is the relationships between cost and distance in agriculture.
- This relationship can be defined as an inverse relationship between labor costs and distance.
- So the larger the distance to the central market, the lower the labor and vice versa.
- Or you can say that the relationship can be linear when you look at transportation costs and distance.
- The closer rings tend to have more expensive, easily perishable products, thus transportation costs must lower.
- On the other hand, the farther rings can afford the larger transportation costs as larger plots of land are needed to produce larger amounts of products.
- And, these larger plots can only be obtained the farther you go from the central market.