Location and the comparative statics of the theory of production

This paper applies modern methods of doing comparative static analysis to the theory of the firm when location as well as input levels are the firm's choice variables. Many results are obtained including all previously known results. Moreover, it is shown that traditional results in the theory of the firm such as downward sloping derived demand curves, generalize to the location problem. New results, such as an increase in a transportation rate decreasing transportation in terms of ton-miles of an input, are also obtained. Many new symmetry conditions are also found.