Economic Planning of Recreation Facilities
The previous chapter has considered only a small part of the recreation sector, but has found that, independently of other influences, variations in the amount of recreational activity are linked with variations in supply prices. This finding suggests that the market is not in equilibrium since a correctly functioning market should result either in the elimination of price variations or a situation in which those variations exactly matched some other socio-economic influence leading to variations in the demand for recreation. If price were less important for one group of people than for others the variation in demand would be a function of that factor, not of price at a given moment of time. The failure of a market to achieve equilibrium is usually the result of imperfections. Initially, therefore, we could regard planning simply as a means of overcoming such imperfections, for example influencing location through the application of town and country planning controls.
KeywordsMarginal Cost Demand Curve Economic Planning Recreation Facility Marginal Cost Price
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