What is von thunnens rent theory?

Answer 1

Von Thünen's rent theory, developed by Johann Heinrich von Thünen in the early 19th century, explains the spatial distribution of agricultural activities around a central market. It posits that land rent decreases with distance from the market due to transportation costs and the perishability of goods. As a result, different types of farming are located at varying distances from the market, with intensive, high-value crops situated closer to reduce costs, while extensive, lower-value farming is found further away. This model illustrates how economic factors influence land use and agricultural practices.