||A multiproduct variable cost function was used to compare the efficiency
of midwestern cooperative and investor-oriented grain and farm supply firms.
Results suggest that cooperatives are no less efficient in a variable cost
sense than their investor-oriented counterparts. Concerning fixed input-variable
cost elasticities, investor-oriented firms may be more effective in their
use of plant and equipment, but cooperatives make more efficient use of
other fixed inputs. However, both types of firms are overinvested in both
types of fixed inputs.