Jb. Parr et Jk. Swales, INDUSTRY COST CURVES AND THE SPATIAL-ORGANIZATION OF PRODUCTION, Scottish journal of political economy, 43(3), 1996, pp. 301-316
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.