Comparative analysis of cattle slaughtering and fabricating costs

Economies of size studies can be categorized according to the methodology employed. Two recent studies for cattle slaughtering and beef fabrication that varied widely in methodology and data were compared using a binary variable regression model. Despite differences in data and the methodology chosen, the comparative analysis showed that results from the two studies were similar. Estimated minimum costs and associated annual volumes were sensitive to inclusion or exclusion of the smallest plant size in one study. Minimum cost annual volumes varied over a relatively wide range, suggesting a flat long-run average cost curve at higher volumes, with only a small effect on average total cost. © 1993 John Wiley & Sons, Inc.