title: Economies of Size in Production Agriculture.
abstract: Economies of size refer to the ability of a farm to lower costs of production by increasing production. Agriculture production displays an L-shaped average cost curve where costs are lower initially but reach a point where no further gains are achieved. Spreading fixed costs, bulk purchases, and marketing power are cited as reasons for economies of size. Labor-reducing technologies may be the primary reason. Most studies do not include the external costs from prophylactic antibiotic use, impact on rural communities, and environmental damage associated with large-scale production. These can contribute to the economies of size.
authors.affiliation: Iowa State University, Ames, Iowa, USA.
authors.forename: Michael
authors.initials: M
authors.lastname: Duffy