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Economies of Scale and Scope for Agricultural Supply and Marketing Cooperatives
Author(s) -
Schroeder Ted C.
Publication year - 1992
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349610
Subject(s) - scope (computer science) , economies of scope , economies of scale , scale (ratio) , sample (material) , agriculture , product (mathematics) , economics , business , industrial organization , agricultural economics , marketing , computer science , programming language , ecology , chemistry , physics , geometry , mathematics , chromatography , quantum mechanics , biology
This study estimates scale and scope economies for a sample of multiproduct farm supply and grain marketing local cooperatives. A bootstrapping regression technique is used to estimate confidence intervals for the scale and scope elasticities. Strong support is found for firm‐wide economies of scale. In addition, product‐specific economies of scale are present for grain, petroleum, feed, and other merchandise sales, and to some extent fertilizer, but not for chemical sales. Scope economies are present for all six products.