COST RELATIONSHIPS IN COLLEGES OF AGRICULTURE

This paper examines cost behavior in higher education and colleges of agriculture. The authors have been involved in a multiyear project to determine how enrollment affects costs. The part of the study as summarized in the paper addresses the unique aspects of higher education that affect costs and presents three cost models based upon data from the University of Minnesota. Implications of these models related to average and marginal costs are discussed in relation to economies of size and scale.Teaching/Communication/Extension/Profession,