An economic analysis for estimation of cost functions and economies of scale for wheat production governrate during 2012 -2013 (Muqdadiya Province – Acase study) Sadoon F.Khater


AbstractThe study aimed to identify the cost production structure, estimate functions costs and economies of scale for the production of wheat. The results showed an analysis of the cost structure of wheat production variable costs accounted for approximately 94% of total costs accounted for fertilizers on the most important by 35%, while fixed costs are formed 6% of the total costs, such as family work the important by paragraphs 70%. The results of quantitative analysis that cost function Cube long-run is most appropriate for relationship adopted in study according to tests of statistical and standard, economic. The results showed size of production optimization 46.39tons, size best about 53 dunum. The estimated elasticity of costs amounted 1 achieved at optimal level of production 46.39tons, were calculated as the minimum price 266167.2 JD / ton. Also results demonstrated the average cost decreases until it reaches to optimal level of production ,while proportion economies of scale achieved to the maximum value 100% at optimal level of production .Average cost and flexibility equal zero to the level of production optimization.