from 0.312 cents a pound for firm A to 0.506 cents a pound for firm F. 

 At the highest density level considered, the unit cost decreases initially 

 and then increases. Tlie cost decreases from 0.245 cents a pound for firm 

 A to 0.220 cents for firm B and then increases to 0.283 cents for firm F. 

 Figui'c 6 illustrates the relationship between average cost and increasing 

 firm size for six firms distributing feed at three density levels. 



Figure 6. Feed Distribution Costs per Pound of Live Broiler for Various 

 Size Firms Producing Broilers at Three Density Levels. 



.8 



.7 I- 

 .6 



T> .5 • 



c 



3 

 O 



'^ .4 



a. 



•> 



.3 



c 

 o .2 



1,000 pound density level 



5,000 pound density level 

 25,000 pound density level 



10 20 30 40 50 60 70 



Firm size' millions of pounds of broilers annually 



With increasing firm size at a given density level, the truck and 

 driver cost increases while the "other" cost category decreases at a de- 

 creasing rate. Of the total unit cost, the unit truck cost is by far the 

 largest followed by the unit driver cost and then the "other" cost. At 

 each density level, the unit truck cost increases at a greater rate than 

 the unit driver cost. 



Successive increases in density at any firm size reduces the unit feed 

 distribution cost by diminishing amounts. All cost categories decrease 

 with the largest decreases occurring in the unit truck cost. Once produc- 

 tion density approaches the 15,000 pound level, further increases in 

 density provide only minor reductions in cost. Figure 7 illustrates the 

 relationships between the unit feed distribution cost for the six firms 

 over the range of production densities considered. 



VI. Total Spatial Activity Cost 



Table 6 shows the total unit cost for each of the three spatial activi- 

 ties and the combined cost for each firm at each broiler production 

 density level. At the 1,000 pound production density level, the total unit 

 cost increases from 1.425 cents for firm A to 2.095 cents for firm D, the 



17 



