A method is presented for estimating a frontier production function allowing economies and diseconomies of scale using linear programming techniques. The general applicability of this function is illustrated by considering the neutral and nonneutral cases. Indexes of technical, price, and economic efficiency of production of observations of equal scale are introduced. Three equivalent efficiency indexes are offered which measure the efficiency of altemative scale activities. Utilization of the efficiency indexes in determining the nature of the production function, causes of observed inefficiency, and the degree and nature of technological advance are discussed.
This analysis indicates that the adoption of different soil erosion control policies by different states in the Com Belt will not result in significant shifts of production activities among the states. Some price impacts would occur but they would be felt throughout the region. More significant impacts may occur at the substate level. Farm operators on more erosive lands may be adversely affected. These results were generated using a general equilibrium linear programming model of crop production and markets in the Com Belt.
In this paper the markets in which individual consumers buy goods and services are analyzed in accordance with the economic theory of market organization. The poor market performance characteristics identified by those in the consumerism movement are found to be consistent with expectations based on this theory. The possibility of achieving efficient market performance through consumer education programs is rejected. At best it would be an inefficient means to the desired end. Several alternative means are suggested for further consideration. They involve changes in the rules under which the economic system operates and therefore will not be easy to achieve.
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