An Analysis of Milk Assembly Costs in the Greater Ohio Area: A Multi-Output Approach

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1990-08

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Ohio State University. Department of Agricultural, Environmental, and Development Economics

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A non-traditional multi-output cost function for milk haulers is estimated. Hauling firm outputs are (i) assembly miles, (ii) transport miles, and (iii) volume of milk hauled. Data were provided by 40 firms. The estimated cost function is shown to exhibit substantial economies of scale for all three joint outputs.

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