changes suggest better use of labor as meat output rose - a finding consistent with MacDonald
and Ollinger (2000,2005) and Ollinger, MacDonald, and Madison (2005).
Elasticities
The own price and Allen cross elasticities are reported in table A.1. All own price elasticities are
negative, indicating downward sloping demand for inputs. Meat/materials was the most inelastic
input but still more elastic than the meat alone elasticities reported in MacDonald and Ollinger
(2000, 2005) Ollinger, MacDonald, and Madison (2005). The labor and capital own price
elasticities are more elastic than meat/materials in all industries. Capital own-price elasticity
ranged from -0.549 in meat processing to -0.790 in chicken slaughter and was quite similar to
labor own-price elasticity, which varied from -0.388 in meat slaughter to -0.615 in chicken
slaughter.
The Allen elasticity of factor substitution indicates the degree to which a given percent
change in factor “k” can substitute for a percent change in factor “j”. A higher positive number
indicates greater substitutability. Values are reported in table A.1. Meat/materials and capital
had the highest positive value, making them the strongest substitutes. Labor and capital are
weak substitutes in meat processing and chicken slaughter but complements in meat slaughter.
Meat/materials and labor are substitutes.
How do costs vary with food safety technology use and effort devoted to performing
sanitation andprocess tasks and?
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