The problem is approached in this study in terms of traditional economic theory of competitive relationships among different producing regions. The empiric solution involves the development of approximations of regional demand and supply relationships and interregional transfer costs and—within the framework of a perfectly competitive market—the specification of optimum allocations of production among different producing regions. Ten producing regions, plus Mexico, are defined, and each mainland state, plus Washington, D.C., is identified as a consuming region. Optimum allocations are determined through use of an adaptation of the transportation problem of linear programming.
