Economic Efficiency and Determinations; Rice Production in the Karo Regency

The purpose of this study to find out if the factors of production could
contribute to production or income, and the cost of rice production, the
economic efficiency of rice production. It is hoped that the result of this
study could give information to farmers and local government in the
Karo Regency, about the contributions of the factors of production to
the production or income and the cost of rice farm operation production.
From the study, it is shown that the characteristics of the model of
production, the using of the factors of production, and the cost of
production opportunity is increasing returns to scale or decreasing cost
industries. The economic scale of rice production describes that the
estimated cost of rice farm production. The analysis of economic
efficiency from rice production was taken from the condition that the
production's marginal cost is lower than the corn scale. From the
contributions of field, seed, fertiliser, and labour toward rice production,
it can be explained that rice production can be raised by increasing the
field, seed, fertiliser, and labour.