ECONOMIES OF SCALE AND OUTPUT FLEXIBILITY IN NORTHEASTERN U.S. DAIRY

This paper argues that even with strong economies of scale, all farm sizes could have similar adjusted average costs and be equally competitive because the advantages of flexibility on small farms tend to offset those of economies of scale on large farms. Evidence from Northeastern U.S. dairy farms suggests that capital intensity and specialization increase with size, flexibility decreases with size, and small and larr,e farms are equally viable despite slight economies of scale.


Issue Date:
Aug 05 1990
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/270871
Language:
English
Total Pages:
17




 Record created 2018-04-06, last modified 2018-04-06

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