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Large variation in unit costs among firms performing essentially the same functions is characteristic of the milk distribution industry. This is so despite their operating under economic conditions which provide generally similar prices for goods and services needed for processing and delivery operations. Presumably the special character of the firms in terms of size, management, age of facilities, and equipment may account for cost differences. What the factors may be is import ant to understanding the ability of firms to operate profitably under a pricing system in which prices received for products sold are largely determined by the lowest cost at which milk can be distributed to consumers . It was the objectives of the analysis reported herein to 1) examine the variation In financial and physical factors thought to affect unit distribution costs and 2) determine the combination of factors which largely explain the differences in unit costs.
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Maine Agricultural and Forest Experiment Station
Maine, milk, processing
Agricultural and Resource Economics | Economics
Metzger, Homer B.. 1979. B756: Factors Affecting the Unit Costs of Milk Distribution. Maine Agricultural and Forest Experiment Station Bulletins .