Factors affecting the supply and demand for limes and lime oil in the U.S.
Abarca Orozco, Saul Julian
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The fresh lime industry is an important economic activity in Veracruz, Mexico. In this thesis, the economic potential of the fresh lime and lime oil industries are investigated. The aim is to determine what effect prices and consumption have on the quantity supplied. Also factors such as regional economic impacts, the feasibility of expanding production, and quality of inputs are examined with respect to how they affect efficiency of production. Results show that optimal quantities of these products are not shipped to the U.S. Recommendations for increasing efficiency in this Mexican industry include increasing economies of scale of by products and taking advantage of trade agreements which widen market access.