On the Nature and Magnitude of Cost Economies in Hog production
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
In this paper, we assess the impact of farm size on production cost and evaluate
the marginal costs and margins by considering that input prices may change with
the scale of production. By using French hog farm data, we estimate a system of
equations including a feed price function, input demand functions, and an output
supply function based on a technology approximated by a combined generalized
Leontief-Quadratic form. Our results suggest that the marginal costs are
over-estimated when the adjustment of the feed unit prices to a change in farm size
is not controlled for.