A firm specific analysis of economies of size in the U.S. urban multiservice transit industry

This paper investigates the long-run cost structure of a specified firm of the U.S. urban multiservice transit industry, thereby permitting inferences to be made to the long-run cost structure of similar firms in the industry. The empirical results indicate that the firm exhibits economies of size over a wide service range. Since cost complementarity does not exist for all service combinations, the results do not support the existence of economies of scope.