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The comparative statics of a competitive increasing-cost industry with production quotas


, : The comparative statics of a competitive increasing-cost industry with production quotas. European Review of Agricultural Economics 23(1): 49-57

Quota restrictions on farm commodities as a form of supply control have been used as an instrument of agricultural policy by various countries. This paper develops a theory of an increasing-cost industry with competition and production quotas under output price support. The theoretical framework is a long run comparative static analysis of a competitive industry exhibiting increasing costs arising from a scarce factor, land, a situation relevant inter alia to the UK milk sector.

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Accession: 002980513

DOI: 10.1093/erae/23.1.49

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