| Summary: | In this note we shall go into this collection of questions in terms of a highly simplified model. A cooperative is considered, consisting of N families, identical in every respect. The cooperative uses its own homogeneous labour and its own land, and hires outside factors from a set of perfectly competitive markets. We shall confine our attention to the efficiency problems that arise within a cooperative enterprise, and not be concerned with allocational problems among them. Problems of taxation are not considered. Nor do we go into saving decisions in this paper, which we assume are left to individual families, and we relate utility to family income and not to family consumption. If the basic framework is found relevant, then the analysis can be easily extended in a variety of directions.
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