Extension, Cooperative

 

Date of this Version

4-1974

Document Type

Article

Citation

Anderson, D.G. and Helgeson, D.L. (1974) Economies of size, volume and diversification in retail grain and farm supply businesses (Research Bulletin No. 261)

Comments

ISSN 0161-3824

Abstract

This study revealed substantial cost savings could accrue to grain and farm supply businesses from plants of larger size. Given sufficient competitive pressures, farmers and consumers might benefit as well from these savings. A continuation of the present trend toward larger, more diverse firms seems likely. Existing firms of sub-optimum size and product structures will probably remain in operation until they are depreciated out. Relatively modest savings from diversified structures make any rapid trend toward one-stop centers unlikely.

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