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Abstract
This paper describes a cost function approach to modelling production and resource use at
the level of the individual farm firm. The procedure for deriving the supply function using
mathematical programming under fairly general condition of a convex input set is shown, and
the model is demonstrated. It is suggested that the model is used as the basic building block in
agricultural sector models, the advantage being that the technology is modelled as a production
frontier providing better opportunities for modelling input and output substitution.