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Show 20 short run, cduld lead to traffic If applied indefinitely bankruptcy. moves fully to Dr, to the larger portion a costs, ICC, and substantial a a considerable Motor carrier practices, although portion overall railroad prices must of traffic in the future must 17 of rail portion at 16 Roy J. Sampson, distributed costs, ed railroad According out-of-pocket According upon substantial volume of traffic, however, it at rates lower than its full cost, rates even below full costs and 15 to a with less at rates move pricing theory cover has largely based follow- uniformity. Economies of Scale Although various studies of motor carrier costs do not indicate scale, neither do they show any diseconomies, cant economies of least, they show long-run 1,5Ibid 16Ibid 17 cost constancy, signifi- At the very 18 0 0 Ibid., p. 489. 18Wilson, also Merrill "The Nature of Competition J. Roberts, "Some Aspects of Motor . , 0 " op , 0 cit., pp 387 91. . See Firm Size, Carrier Costs: " Efficiency, Robert A to 0 the New Land Economics, 32 (August 1956); and and Financial Health, Nelson, "Motor Freight Transport for New England, ", Report No.5 England Governors' Conference (October 1956), The report operating costs. cludes that" size of firm bears little relation to Smykay, "An Appraisal of the Economics of Scale in the Industry," Land Economics, 34 (May 1958), po 143, is critical Edward W Motor Carrier con " 0 of both of the above reports and indicates that more research is needed to make He indicated that utilization of equipment is area, definite conclusions in this adorn inant factor in by Roberts, developing economies of scale. This is also alluded to |
