Economies of Scale in the Floriculture Industry

This study investigated the cost structure of the floriculture industry in the United States. Economies of scale and input elasticities were estimated with a normalized quadratic cost function. Results suggest that economies of scale exist in the floriculture industry. As producers become large and more automated, they have a cost advantage relative to smaller producers who are producing the same output product mix. The existence of economies of scale suggests that average grower size can increase in the future as growers increase in size to take advantage of cost efficiencies.


Issue Date:
2003-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/43145
Published in:
Journal of Agricultural and Applied Economics, Volume 35, Number 3
Page range:
497-507
Total Pages:
11
JEL Codes:
Q12; C31; D20




 Record created 2017-04-01, last modified 2017-04-04

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