INDUSTRY COST CURVES AND THE SPATIAL-ORGANIZATION OF PRODUCTION

The nature of production is examined for a particular class of economi c activity at the scale of the region. Average cost conditions at the plant level are specified, from which the long-run average cost curve of the regional industry is derived. Attention is then drawn to certai n features of this curve, including the upward-sloping form over part of its length. Consideration is also given to different types of adjus tment over various time horizons. Finally, for a regional industry und er unified control, long-run equilbrium is specified for alternative f orms of competition in the extraregional product market.