Economies of Scale and Scope in the Motor Carrier Industry. An Analysis of the Cost Functions for Seventeen Large LTL Common Motor Carriers

Economies of Scale and Scope in the Motor Carrier Industry. An Analysis of the Cost Functions for Seventeen Large LTL Common Motor Carriers

The largest carriers are shown not to have a cost advantage in terms of overall returns, less than truckload specific returns, and economies of scope. Arguments of domination in the LTL segment by very few large firms based on their cost advantages are probably incorrect.

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