Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

study as to the level of output to which his estimate corresponds.
However, our figure of $1.578 does appear qufte reasonable. One
would have to add an estimate of direct barge expense and indirect
expense to our estimate to make it directly comparable to Meyer's
* figure.
In summary, the results for the towboat cost function are quite
generally consistent with a priori expectations and result in reason-
able overall predictions of average cost. The evidence presented
indicates that there is strong dependence of cost upon towboat char-
acteristics and the physical characteristics of the various waterways.
Both long-run and short-run average costs are declining, indicating
,•
that if output was to be expanded, a major category of total average ,
cost would be declining, at least for a wide range of output.
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