ESTIMATION OF COST FUNCTION OF TABLE EGGS PRODUCTION IN BAGHDAD PROVINCE

Abstract

ABSTRACTThe objective of current work is to estimate the total cost function from which average cost function could be derived. Through using the average cost function, optimum size could be calculated and then deriving economies of size for different capacities in order to determine the efficiency of the usage of available resources. The results showed that most costs were variable as they formed about 88.5% of total cost and most table egg - projects were within the category (10000 - 15000) and (20000 - 30000) birds as their percentage was 52% of total projects. Least average cost was achieved at the size (5000-10000). The results showed also that the function coefficient value was more than one for the sizes less than the optimum size which depicts the first stage of production; while its value becomes one at the optimum size which depicts the beginning of the second stage. The study had arrived to some recommendations most important of which was to expand the production of table - eggs to the optimum size and to encourage investors in this sector.