A cost function characterizes a firm's cost-minimizing behavior. It is defined
as a function of the level of outputs produced and the prices of factors which enter
the production process. Econometric estimation of a cost function allows one to test
hypotheses regarding the structure of cost and the structure of...
Marketing cooperatives that operate on a pool basis allocate net returns on the basis of the "economic value" of the raw products each member has delivered. Economic values ideally reflect the raw products' expected contributions to pool net return. In a competitive market, raw product prices would reflect these expected...