What Does the Survivor Technique Show about Economies of Scale?

* I am indebted to John B. Lansing, Joe S. Bain, Thomas Saving and especially to Shorey Peterson for constructive comments on several points in this paper. Generous research assistance has been provided by the Institute of Public Administration at the University of Michigan. Reviews of these studies include: Cost Behavior and Price Policy, National Bureau of Economic Research, 1943; C. A. Smith, Survey of the Empirical Evidence on Economies of Scale, in George J. Stigler, ed., Business Concentration and Price Policy, National Bureau of Economic Research, Princeton University Press, 1955; and J. Johnston, Statistical Cost Analysis, McGraw-Hill, 1960.