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Abstract
4-ultilateral Tornqvist indices are computed with 1984-86 cost-of-production data for wheat from seven EC countries and the United States for cross-country comparisons. The major producers of wheat used almost equal quantities of goods and service inputs per unit of production. On the basis of a purchasing power standard, however, absolute costs of production in the United States are found to have been lower than in France and the United Kingdom. This study shows how costs of production can contribute to the understanding of international competitiveness.