| Abstract: | ABSTRACT. This study investigates economies associated with size of New England water utilities. Regression analysis techniques were applied to annual water cost and production data reported in the American Directory of Water Utilities (1968-1969). Modest economies of size in the production of water were found. Because in large communities more water is used per person, total cost increases at a slightly faster rate than population increases, but per unit costs of producing water decline. Substantial economies occurred when the number of customers was held constant and volume of water per customer increased. This study indicates possible economies when two or more of the many very small utilities combine activities to form a larger unit and by encouraging present customers to use more water. |
