ABSTRACT
This chapter discusses the two important basic definitional problems of the ideal city: first, the ability of the population to in- or out-migrate; and second, the forces that determine the breaking-point between urban and nonurban regions. It introduces the two fundamental issues required for the proper specification of the Consumption Theory of Land Rent model: the determination of the location of the delineation between urban and nonurban regions, and the decision as to whether welfare or population is to be endogenous, given the exogenous value of the other term. The range of the interactive city depends upon the interaction between the urban land economy and the nonurban economy. Interactive city are three general land use categories: urban, transition, and nonurban. The interactive city has the boundary defined as the intersection between urban land rent and the cost of conversion of nonurban land to urban land utilization.
