Environmental Engineering Reference
In-Depth Information
3.
How many hours were spent herding the livestock?
4.
What was the cost of this labour?
5.
Were there any other costs in involved in rearing the livestock? What
were they?
Once again, it should be noted that this illustration gives an example of the
kinds of questions that should be asked in a questionnaire survey, but does
not give the form that the questions should take.
With this information, a proi t function can be written:
P
l
5
P
l
Q
l
2
C
l
(11.3)
Where:
P
l
5 total proi t of livestock($);
P
l
5 price of livestock ($/kg);
Q
l
5 quantity of livestock produced (kg);
C
l
5 costs of production of livestock ($).
Substituting Equation 11.2 into Equation 11.3 gives:
P
l
5R
l
(
L
l
0.5
A
0.5
)
2
C
l
(11.4)
The total proi t from livestock production can then be identii ed for any
given levels of land and labour.
Thus, if
P
l
5 10,
L
l
5 200,
A
s
5 20 and
C
l
5 500:
P
l
5
(
10 * 200
0.5
* 20
0.5
)
2 500
5 $126
annum
21
(11.5)
Step 3: Identifying the production function for forest goods
In exactly the
same manner as described for the production function of livestock, a pro-
duction function of forest products can also be identii ed.
The amount of a good, for example, wild fruit, produced by the forest
will be partially dependent on the area of forest. It will also be dependent on
other factors such as the amount of time spent in collecting it. The methodol-
ogy required would be the same as that for identifying the livestock produc-
tion function in that data would be obtained through a questionnaire survey
of the local population. Therefore further details are not given here. In
Equation 11.6, an example is given of a possible fruit production function:
Q
f
5 2
(
A
t
2
A
0.2
)
1 3
L
f
0.7
(11.6)
