Abstract
The main purposes of this paper are: 1) to estimate cost functions and 2) to determine the optimal business intensity and size for turf grass producing farms. The results of this analysis were that the cost functions in the short and long run as well as the correlation between farm business size and turfgrass production could be estimated by a linear function. In other words, the average production cost decreased as turfgrass production increased in the short run and as the size of the business in guestion expanded in the long run. However, optimal business intensity and size could not be determined in this case study, because none of the farms that were analyzed in this study were large enough in regards to business intensity and size in order to show a decreasing return to scale.