Production Costs in Atlantic Fresh Fish Processing

Production costs for fresh Atlantic groundfish and scallop processing are examined using direct observation, linear regression analysis, and cost accounting. Assuming that management chooses a production technique where marginal costs are constant over a wide range of production due to management's expectation of predictable and unpredictable variationin product demand and exvessel supply, estimates of marginal cost for nonfish inputs from linear regression results andfrom cost accounting are compared. Also, regression results for physical yield from fish inputs are compared to estimates fromthe U.S. Department of Commerce. The similarity in results between these independent forms of estimation supports the maintained hypothesis of constant marginal cost over a wide range of production.