Shaktijin Letters that are duplicated as in A in this example indicate multiple parts. Example 2 — Jones: Strings are represented with a series of five digits representing the quantity of each part first violin, second violin, viola, cello, bass. There is no low brass. The first number stands for Violinthe second for Violathe third for Celloand the fourth for Double Bass.

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Dotaxe This is important in terms of competitiveness of the sector, as the mean costs follow a decreasing trajectory in the measure that production level increases. To this end, a t test is applied, allowing to prove H0: There are also export quotas towards markets with which Chile has subscribed trade agreements, thus generating important business opportunities for this industry. We consider the optimum condition for the case of a highly concentrated market in the market of the final product pork meat.

An indirect way of estimating the coefficients of function 1 is by the estimation of the costs function obtained from the Cobb-Douglas technology, more specifically, by means of the marginal costs function, since this is expressed in terms of the price of the factors and the level of the production. Given the above results, the industry presents economies of scale, since the variation of the costs as regards production is estimated as 0. This process can benefit the consumers, in the context of markets functioning with imperfect information, since the price paid is relatively lower, reflecting the greater efficiency of the company that shows economies of scale in its technological processes, as regards that which would prevail in a competitive market.

The pork meat offer has also been concentrated in a dominant company, revealing important cost advantages for it Vargas and Foster, ; Vargas et al. In the present work, the interest is centered in the exponent accompanying the production level, as it reflects the type of yield to scale present in the pork meat production process. Given the characteristics of the estimated model, the variables were incorporated in their logarithm transformation. This functional form is flexible and, under determined restrictions on its coefficients, can represent several functional forms and can be applied to multi-product enterprises.

Estimating model result for period Therefore, the presence of economies of scale in the technological process of a company of the industry generates the conditions for that company to have cost advantages as regards its competition, and eventually consolidate itself as dinard dominant or leader company in the market. If it is ecoometria, the technology shows yields on a decreasing scale, and if it is statistically equal to zero, this suggests a constant scale of yield.

It can be pointed out that all variables were stationary in the first differentiation, except for production, which was so in the second. If a company shows yields in a growing scale of its technology and the perfect information conditions are not present, this company can increase its participation in the market and in this way modify the structure of it, as is argued by Panzar and Amir Thus, we see that the total cost function, issuing from a Cobb-Douglas technology, can be expressed as: The objectives of this research were: The identification and econometric estimation of economies of scale has been done using a trans-logarithmic costs function over panel data, linking size of the plant and variables related to technology, which emphasis on the cost elasticity at meyodos level of primary production, such as happens in MacDonald and Ollinger and Ollinger et al.

In this last case, the series has constant variance when, in absolute terms, the statistic of Dickey-Fuller Augmented DFA Johnston and Dinardo, calculated is higher than that tabulated. This is the fundament to set out the following assumptions. Salary index industrial sector. This is important in terms of competitiveness of the sector, as the mean costs follow a decreasing trajectory in the measure that production level increases.

Furthermore, agricultural policy elements function in this sector, linked to the compliance to sanitary regulations for the slaughter as well as the domestic and exterior marketing of pork meat. Simulated average cost and meat pork production of the industry. In this case, the price is weighted by a factor which measures the power of monopoly of the representative enterprise, whose estimation is found in the pioneer work of Bresnahan The unit root test was applied in this manner.

In this case, the price is weighted by a factor which measures the power of monopoly of the representative enterprise, whose estimation is found in the pioneer work of Bresnahan This is how that, considering equation 2the estimation of the coefficients and a hypothesis about the value of the parameter M, the following equation for the added cost for the pork meat industry was obtained: This fact is also reported for the case of the pork meat market in the United States Morrison, In this last case, the series has constant variance when, in absolute terms, the statistic of Dickey-Fuller Augmented DFA Johnston and Dinardo, calculated is higher than that tabulated.

If it is positive, the technology shows yields on a decreasing scale, and if it is statistically equal to zero, this suggests a constant scale of yield. Cochrane-Orcut correction for the first order correlation of the residues; R 2multiple determination coefficient to measure the adjustment fitness of the model; F statistic applied to asses the global significance of the model; Durban-Watson, statistic applied to evaluate the presence of autocorrelation in the residues of the model.

Therefore the estimated t corresponds towhich is contrasted with t of the table. Maximization of benefits in imperfect competition.

Analyzing algebraically according to expression 2 in individual terms, the product-labor elasticity resulted as 0. The structural element that sustains concentration and expansion of the production is the presence of increasing returns to scale in the production process.

This investigation had the objective to verify the presence of economies of scale in this industry. According to the estimated model, the addition of the elasticity product-labor and product-capital reached 1. Market structure, scale economies and industry performance. One of the theoretical conditions for a market to respond to competition conditions is that the technology present in the industry should show yields at constant rates, both for the factors market as well as for the end product, since the companies will produce their optimum economic level in such quantities as will not have an influence in the balance Varian, Technological change and economies of scale in U.

The result is shown in Figure 1. Statistical characteristics of the series employed. It was concluded that this industry shows conditions to increase its advantage in costs and of expanding its competitiveness in international markets.

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