Negative Milk Supply Response Under Constrained Profit Maximizing Behavior

摘要: A conceptual model is formulated that shows a downward sloping supply function may exist for profit maximizing firm facing cash-flow constraint. The necessary requirement at least one factor must be non-cash input. tested using analysis of variance on two groups producers from farm record data, group binding budget constraint the other not. results indicate farms cash flow increase output more than not restricted by in response to price decrease.