Another significant point is the great importance of non-price consider- 

 ations in competing for the farmers' feed business. Variations in formulas 

 and performance make direct price comparisons a rather difficult task for 

 the individual farmer. 



As farm units increase in size and decrease in number, retail units 

 can sell the same or larger quantities of feed to fewer customers. This may 

 increase efficiency as well as changes in route arrangement, frequency of 

 delivery, and rates of performance. 



Management decisions relative to adoption of technological improve- 

 ments, such as bulk feed, are frequently made on the basis of following the 

 lead of competitors rather than solely on the basis of short-run costs and 

 returns. Perhaps these are necessary in the long run for the firm to main- 

 tain its "share" of the market, but the end result is not always cost 

 minimization. 



28 



