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Abstract

Increased emphasis on consumer markets in broiler profit-maximizing modeling generates results that differ from those of traditional profit-maximization models. This approach reveals that the adoption of step-pricing and consideration of marketing options (examples of responsiveness to consumers) affect the optimal feed-formulation levels and types of broiler production to generate maximum profitability. With the adoption of step-pricing, higher profits can be obtained for targeted weights only if premium prices for broiler products are contracted.

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