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Thesis (M.A.)—University of Nebraska—Lincoln, 1958. Department of Economics.


Copyright 1958, the author. Used by permission.


In this study, under the assumptions used, it is apparent that the structure of short-run cost relationships approximates the theoretical relationships described in economics textbooks.

The closer plant operation or volume of grain handled approaches 100 percent utilization of existing facilities, the better the short-run cost relationship. However, it follows that if an elevator is operated at more than 100 percent of existing facilities or capacity average, costs will rise. An example of operating a grain elevator at more than capacity would be the situation that arose in Kansas during 1955 harvest. Production was at a high level and there was a shortage transportation; therefore, elevator capacity was not sufficient to handle the crop. As a result, grain had to be stored in the streets of several towns. The grain stored under these conditions had to be handled almost completely by hand labor when storage capacity in the elevators became available. Using manual labor instead of machinery in this instance resulted in increased unit costs. It is necessary to determine how to better handle a surplus of crop.

Advisor: Clarence J. Miller