Final answer:
Dairy farming and other perishable items are situated closest to the central market in the Von Thünen model due to their perishable nature and high transportation costs. Dairy farmers near urban markets specialize in liquid milk, while those further away focus on less perishable dairy products.
Step-by-step explanation:
In the Von Thünen model, dairy farming, as well as other perishable items, are situated closest to the central market because these products are both perishable and expensive to transport.
Dairy farmers living near urban markets specialize in liquid milk, while those further away convert milk to less perishable dairy items like butter, cheese, and ice cream. This is because it would be impractical for farmers living far from the city to specialize in foods that spoil quickly.