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Agricultural Economics Research, Vol. 23: January 1971 (Classic Reprint)
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Agricultural Economics Research, Vol. 23: January 1971 (Classic Reprint)
Current price: $24.60
Barnes and Noble
Agricultural Economics Research, Vol. 23: January 1971 (Classic Reprint)
Current price: $24.60
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Excerpt from Agricultural Economics Research, Vol. 23: January 1971
A monthly gross revenue equation may be obtained by multiplying the equation in table 1 by the quantity corresponding to the dependent variable and summing equations.8 A net revenue equation is derived by subtracting equation (8) from the gross revenue equa tion. Following the procedure outlined in (3) to the revenue-maximizing quality mix may be determined for each month as a function of the total quantity of frozen sprouts to be sold during the month, the monthly sales of fresh sprouts, and the value of the trend factor. The basic decision facing the industry, however, is not how to allocate predetermined monthly sales among quality classes (although eventually this must be done), but how much to produce in each quality class. Since production decisions are made annually rather than monthly, we need an annual revenue function. This is obtained by summing the monthly revenue equations over 12 months.
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