On Discarding Low Quality Produce

Dung Nguyen and Trang T. Vo

American Journal of Agricultural Economics, 1985, vol. 67, issue 3, 614-618

Abstract: This paper considers a model of optimal culling in which demand is generally nonlinear. We show that the shape of the break-even quality price change curve depends on both the concavity-convexity of the demand function and the price elasticity. We specify that the actual quality price change is an increasing function of the minimum quality but at a decreasing rate. Conditions ate then obtained to ensure that a minimum quality level chosen from a permissible set would yield maximum total profits for the industry.

Date: 1985
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:67:y:1985:i:3:p:614-618.

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