Social and Behavioral Sciences Commons^™

B756: Factors Affecting The Unit Costs Of Milk Distribution, Homer B. Metzger

Bulletins

Large variation in unit costs among firms performing essentially the same functions is characteristic of the milk distribution industry. This is so despite their operating under economic conditions which provide generally similar prices for goods and services needed for processing and delivery operations. Presumably the special character of the firms in terms of size, management, age of facilities, and equipment may account for cost differences. What the factors may be is import ant to understanding the ability of firms to operate profitably under a pricing system in which prices received for products sold are largely determined by the lowest cost …