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The study aimed to estimate the cost functions for calves breeding projects in Babylon province for the year of 2019 and to identify the structure of production costs for these projects based on field data for a sample of calves breeders in the province that included (60) breeders who represent (10%) of calves breeders in the province for the year of 2019. The results indicated that the cubic cost function is the most appropriate for the relationship adopted in the study according to statistical, standard, and economic tests, and the optimum production scale amounted to (26561 kg). The rate of the product that maximizes profits amounted to (3559 kg), and the minimum price at which the breeders would accept to sell their produce amounted to (5965.9 dinars). The results of the study for the ratios of achieved economies of scale and cost elasticities concluded that average costs decrease until it reaches its lowest level at the optimum level of production, while the proportion for the achieved economies of scale reaches its maximum value of 100% at the optimum level of production and the elasticity of average cost is equal to zero at the optimum level of production.

AN ECONOMIC STUDY TO ESTIMATE THE COST FUNCTIONS AND ECONOMIES OF SCALE FOR CALVES BREEDING PROJECTS IN BABYLON PROVINCE FOR THE YEAR OF 09