Economics of scale and supply function for projects of rearing lamps in the district of Anbar

Abstract

Generally the meat of sheep and especially for Iraqis people is considered an important and product Moreover it formed significant Cato of Iraqi budgetary who cannot neglect the Iraqi meat of sheep, Therefore the projects which produce this commodity become important.The analyzing costs and determining optimum size of those projects would contribute the rationalization of commodity production to achieve technical and economic efficiency which will get benefits for the producers and consumers.This study aims to estimate the costs of scale for long period to product lamps meat and used them to estimate the perfect size for this project and estimate the supply function of product it showed that the perfect size is achieved by rearing 618 sheep per year and then sold out them when they are 25 kg for one lamp to reach for one project nearly 15106 kg. The minimum cost for the product at the same level from production is a bout 4225 I D per kg . it is showed that the quantity which supply by the producer increasing to reached a bout 19043 kg when the price which may reach for one kg to 12000 ID.This study aims at estimating the costs of scale for long min period for lamps meat and to use them to estimate optimum size for this project and estimate the supply function of this product showed that the optimum size is achieved by rearing 618 sheep per year and then sold out when they are 25 kg for each lamp which reach for each project nearly 15106 kg .the minimum cost for the product would is about 4225 ID per kg. the results showed also that the quantity which is supplied by the producer increasing to reach a bout 19034 kg when the price becomes 12000 ID .