Estimating the Profit Cost Functions, Economic and Technical Efficiencies of Corn Production in Babylon Province in Iraq
International Journal of Applied Agricultural Sciences
Volume 1, Issue 3, September 2015, Pages: 66-73
Received: Jun. 13, 2015; Accepted: Jul. 14, 2015; Published: Jul. 29, 2015
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Authors
Osamah K. Al-Mansi, Department of Agricultural Economics, College of Agriculture, University of Baghdad ,Baghdad, Iraq
Zahra H. Mahmood, Department of Agricultural Economics, College of Agriculture, University of Baghdad ,Baghdad, Iraq
Nada K. Abbas, Department of Agricultural Economics, College of Agriculture, University of Baghdad ,Baghdad, Iraq
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Abstract
The study aimed to estimate the profit and cost functions as well as the economic, price and cost efficiencies of local and hybrid varieties of corn. A random sample of 80 corn farms in Babylon province were selected during the agricultural season 2013. From efficiency scales of profit functions, it was shown that the production size had the greatest impact on the profit of both local and hybrid seeds compared with the other price variables and average production costs. According to the cost functions, the optimal cost-minimizing production sizes were 40.7 ton and 47.77 ton for local and hybrid seeds respectively; while the technical efficiency, economic efficiency, price efficiency and cost efficiency for these seeds were respectively 20.996% and 49.88% ; 20.996% and 49.88% ; 22.34% and 38.74; and 0.49 and 0.59. From these results it can be concluded that employed economic resources in the production process were not optimally exploited which resulted in a reduction in technical efficiencies for both varieties of seeds. The study recommended to follow production policy aiming to increase the economic efficiency and achieve the optimal usage of available resources
Keywords
Profit Function, Cost Function, Technical Efficiency, Economic Efficiency, Cost Efficiency
To cite this article
Osamah K. Al-Mansi, Zahra H. Mahmood, Nada K. Abbas, Estimating the Profit Cost Functions, Economic and Technical Efficiencies of Corn Production in Babylon Province in Iraq, International Journal of Applied Agricultural Sciences. Vol. 1, No. 3, 2015, pp. 66-73. doi: 10.11648/j.ijaas.20150103.14
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