PROFIT MAXIMIZATION AS A MANAGEMENT GOAL ON SOUTHEASTERN MONTANA RANCHES

While tests of producer rationality defined as conformity to the rules of profit maximization (or a similar postulate) for less developed countries are numerous, such tests for high-income countries are rare. This study investigates the extent of rationality observed in the production behavior of ranchers in southeastern Montana. The procedure used is that of Wise, Yotopoulos, and Nugent, based on a profit-maximizing production model. The data were collected by personal interviews for 69 ranchers. Results indicate that profit maximization is a reasonably good postulate for studying the behavior of ranchers, and that various policy measures, could, at least tentatively, proceed on that basis.


Subject(s):
Issue Date:
1984-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32365
Published in:
Western Journal of Agricultural Economics, Volume 09, Number 1
Page range:
186-194
Total Pages:
9




 Record created 2017-04-01, last modified 2017-08-24

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