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4) become zero, so there is no "jealousy". Well-being is constant, jealousy is absent; the situation is stable. Another interesting feature is that the well-being in a region remains constant if the elements of its functions increase in proportion to the maxima of these elements; in that case there is neither increase in well-being, nor decrease in "jealousy". A third feature is that since generally the maxima will not all be found in the same region, each region has a feeling of being worsted in comparison to other regions even if its total welfare in an objective sense is maximum.

The objective which industries aim at will here be defined as "profitable continuity". Location is important, for an industry must have access to an adequate market in which to sell its products, and be accessible to the inputs required in its production process. To both conditions, the constraint of transportation costs weighing upon the financial results applies. Differences in supply and demand potentialities between regions, between town and country, between subregions within an urban region, make for differences in the attractiveness of industrial locations.

2. Demand and supply potentials The application of the concept of potentials to the analysis of locational behaviour offers similar advantages in this case as in that of individual residential choice. Indeed, the attractiveness of a region or town as a location for an economic activity is determined by the availability of elements that are needed for the production process—raw materials and auxiliaries, labour, services, customers, and facilities for the transport of all these elements. It is not necessary for the elements to be present in an industry's own region; distances can be bridged, and the industry may potentially obtain its input from, and sell its products to, all other regions.

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