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Measuring Product Costs for Ratemaking: The United States Postal Service

  • Michael D. Bradley
  • Jeffrey L. Colvin
  • Marc A. Smith
  • Robert L. KendallJr.
Part of the Topics in Regulatory Economics and Policy Series book series (TREP, volume 12)

Abstract

In the last few years, the cost management literature has established that it is essential for any firm to get its product costs “right.”2But the importance of this task does not mitigate its difficulty, particularly in a multi-product firm. This is the costing challenge faced by the U.S. Postal Service. It is a large multi-product service “firm” characterized by a high degree of commonality in production, particularly in the delivery function.3Nevertheless, it must accurately measure its product costs for the purpose of setting rates.4

Keywords

Marginal Cost Variable Cost Common Cost Cost Elasticity Contestable Market 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1993

Authors and Affiliations

  • Michael D. Bradley
  • Jeffrey L. Colvin
  • Marc A. Smith
  • Robert L. KendallJr.

There are no affiliations available

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