Microeconomics of existing aquaculture production systems: basic concepts and definitions

Abstract

The paper focuses on the role of the relative prices in farmers' production behaviour and presents a model for explaining output variations among farmers. In the context of this production mode, the concepts of output elasticity, economies of scale, and technical and economic efficiency are explained using illustrative examples. The type of data used and the estimation techniques are briefly described and the distinction between average and frontier production functions is emphasized.