THE APPLICATION OF THE COBB-DOUGLAS PRODUCTION FUNCTION IN ANALYZING THE EFFECTIVENESS OF PRODUCTIVE RESOURCES IN AGRICULTURAL ENTERPRISES OF PRIMARY PRODUCTION

Abstract

The definition of the effective allocation of sources is very difficult since the term of efficiency has different meanings attached in the theory and the practice. The aim of this article is to evaluate the effectiveness of expended production inputs by selected entities working on land with the use of the production analysis. The presented highly specialized issue fills the void in this field of study for the period at the turn of the millennium that was specific in its transformation and integration processes related to the accession of the Slovak Republic to the European Union. We presume that the transformation process of the Slovak economy from the centrally planned economy into the market economy was not completed in the analyzed period and left its marks in the form of ineffective allocation of production factors in the sphere of the agricultural basic industry. This analysis of production function and cost optimum confirmed our assumption. In addition to the search for the effective allocation of production resources in the selected period, it is possible to state that the monitored group of companies did not reach the cost optimum in the production. The achievement of the optimal allocation of production resources would be reached by the monitored group only in case of decreased number of employees and increased intensification factors in production.