Economies of Size in Wheat Production
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This paper investigates the relationship between the cost of producing wheat and the size of the wheat enterprise on farms in the Boolooroo Shire of New South Wales. The impact of seasonal variation and new technology on the cost/size relationship is also examined. The estimated longrun cost functions suggest that significant cost economies may be achieved as the area sown to wheat on a farm in the region concerned is increased to approximately 1,000 acres.