This is an empirical study of economic measurement of the optimal size of seven cities in West Sumatra region, Indonesia. The empirical findings are quite interesting since the calculated optimal city size does not result in a single measure as mostly previous studies found, but they vary in accordance with the economic approaches used. The optimal city size measured by using the maximum profit approach would have been larger in size compared to those measured by the minimum cost and maximum net benefit approaches. Meanwhile, the cities measured by using the maximum net benefit have larger size than those of the minimum cost. Unlike previous studies, the measurement of optimal city size in this study is performed in terms of population density rather than the total population, in order to consider the influence of land area to the optimal city size. Moreover, by using the population density, the optimal city size becomes a relative index which enables us to compare it with the related size in other regions.

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This study aims to analyze: 1) Is the production of salt farmers on the Madura island is optimal or not, and 2) Is the salt farmers on Madura Island in production has reached maximum profit or not. The population in this research is all the people salt farmers that exist in 4 districts in Madura Island namely Bangkalan, Pamekasan, Sumenep and Sampang 220 people who are drawn based on Slovin method. Optimal production is determined by criteria comparison MPK/MPL = r/w. While the maximum profit is determined based on MR and MC criteria. The results concluded that: 1) Salt production on Madura Island has not reached optimal condition. This is evident from MPK/MPL < r/w (0.652 <1.22). The profit from salt production on Madura Island does not reach the maximum condition because the value of MR > MC (2,550,84 Rp/month > 128,67 Rp/month). Based on the results of the research, the suggestions that can be proposed are 1) Conducting land integration effort among the people salt farmers to reach the minimum production scale of 10 hectares. And 2), the role of PT Garam (Perseoro) as a processor institution (salt processor) is also necessary in order to strengthen the role of price stabilizer and increase the added value of salt commodity.

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The regional approach in agricultural development has only been limited to the concept and has not been implemented in real terms. Various forms and models of agricultural development policy using the regional approach cannot prove that the indicators of regional approach have existed and been applied in agricultural areas. The development of agriculture so far has only been sectoral. This indicates that the concept of agricultural development through regional approach has not been implemented in real condition. In development through regional approach, the synergies among sectors and among economic activities are compulsory. The production central area (PCA) approach is one of the agricultural development approaches based on regional economic development theory. This research aimed to assess how area production center as a model of agricultural development that had considered regional concept, could be success in developing regions. The respondents were layer hen breeders residing in PCA location and Non PCA (50 respondents each).The study reveals that the value of agglomeration profits of large scale economies (SEI), localization economies (LEI), capital and labor showed positive and significant effects on layer hen production at PCA location. To further increase commodity production in PCA, the agglomeration profits as a regional approach variables should be part of the PCA analysis to improve productivity, efficiency and provide added value for farmers/breeders.