Abstract
This paper extends Löschian theory towards the end of claiming its applicability to heterogeneous space economies as well as to the homogeneous space economy. It then tests the theory by examining the relationships between fixed costs and market-area sizes. The result is an empirical demonstration that the level of fixed costs in the United States is so low that market areas too large to be approximated by the optimal hexagonal market-area shape are not likely to be associated with competition in free-enterprise countries. It is in fact indicated that competitive firms sell over comparatively small market areas. The related conclusion follows that there is nothing in market-area studies (empirical or theoretical) that would imply inefficiency or failure to maximize consumer wants.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
