Analysis economical of olive producers using Douglas cab function in the west of the country (Case study: Ilam city)

Energy efficiency is in the production of agricultural and horticulture products. Due to the olives' compatibility in terms of resistance to water deficiency, olive cultivation has become popular in some parts of the country, including Ilam province. This study was conducted in 2019 with the aim of Economic Analysis Using the Cub-Douglas function of Production Olive in Ilam city. Information on the number of olive growers and yields was obtained from the Comprehensive Agricultural Data Structuring and Management System. The study included an economic analysis of olive production by analyzing human resources, electricity,  fossil fuels, chemical fertilizers and animal manure, pesticides, and water. The gross value,total production cost, interest-to-cost ratio, net profit (special profit), and gross profit of olive production were 17519366, 3928231, 3.46, 13591135, and 14669100 Tomans, respectively. The tensile strengths of manpower, gasoline, nitrogen fertilizer, livestock manure, water, and electricity were calculated to be 0.058, 0.01, 0.001, 0.038, 1.05, and 0.158, respectively. This study estimated APP and MPP of direct energies as higher than indirect energies. Average product productivity (APP) of renewable and non-renewable energy was obtained with coefficients of 1.046 and 1.252, respectively. Marginal physical product (MPP) of renewable and non-renewable energy was estimated with the coefficients of -0.735 and -0.026, respectively. The highest final product in Model 1 was water input. Direct energies' final productivity and average productivity were higher than indirect ones. Finally, due to the special profit and special profit obtained in this study, the economical production of olives is affordable.