Date of Award

December 2019

Document Type

Thesis

Degree Name

Master of Arts (MA)

Department

Economics

Committee Member

Scott Templeton

Committee Member

Scott Templeton

Committee Member

Thomas Hazlett

Committee Member

Raymond Sauer

Abstract

SteelFab is a structural steel fabricator with headquarters in Charlotte, North Carolina. In this study I analyze costs and profits for the firm. In particular, I estimate a cost function for SteelFab projects. I use the cost function to test the effects of project output, project regions and project type on costs. Short-run economies scale seem to exist. Costs increase as input prices increase, all else equal. Costs of new hospitals and specialty buildings are higher than new warehouses at a highly significant level. In light of the cost analysis, I analyzed profits with a focus on project size and project type. The evidence suggests that fabrication and erection of steel for large warehouses is consistently the most profitable type of SteelFab project.

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