Research article

AN ECONOMIC STUDY TO DETERMINE THE OPTIMAL RESOURCE COMBINATIONS FOR OLIVE GROWERS IN BASHIQA DISTRICT FOR THE 2021 PRODUCTION SEASON

Ahmed Hashem Ali 1 and Hassan Thamer Zanzal 2

Online First: December 15, 2023


The olive tree is one of the blessed trees known to man since ancient times, and one of the food security crops for many countries. Among them, the research aimed to determine the optimal resource combinations for olive growers in the Bashiqa district for the season 2021, where it is the most area in Iraq that cultivates olives. The production function was estimated as Cobb-type Douglas and in the long run. As the optimal amounts of profit-maximizing and cost-saving resources were reached and compared to the actual reality, as well as finding multiple combinations of resources at different levels of production through isoquant curves and measuring the distributional efficiency in the use of resources, through data collected by means of a questionnaire prepared for this purpose for a random sample of fruitful farms consisting of 58 farms, It constituted 10% of the study population, its area was one hectare or more. Among the most important findings of the research is that the production volume of the bulk of the profits amounted to 1624 kg / dunum, and profits amounted to (611107) dinars / dunum, compared to the actual production of 1505 kg / dunum, and profits amounted to (533757) dinars / dunum, While the profits when costs were reduced amounted to (577857) dinars / dunum, in the light of these results, the study recommends olive growers to use the optimal quantities of resources, whether maximizing profits or civic costs, in order to increase their profits.

Keywords

Cobb-Douglas function, profit maximization, cost minimization, resource combination, production