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Survey reveals cost curve behavior in trucking firms, indicating size dominance among larger operators.
The author’s survey leads him to conclude that the average cost curve declines sharply to an output level of about 6.8 million ton-miles per annum, and rises gradually beyond that. The trucking industry is dominated by firms above that size as a result of the policy of the US Interstate Commerce Commission.
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R. Koenker (1977) studied this question.
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