In this study, the presence of SCALE ECONOMIES, an important production technology characteristic, in shrimp farming industry, is examined jointly with the input elasticity of substitution and factors price elasticities. To this end, a dual Tran slog cost function was estimated, using data from 51 shrimp farms in southern province. of Iran. Results revealed that SCALE ECONOMIES exists in the Iranian shrimp farming industry, meaning that there is a good potential to reduce the unit cost of production by choosing an appropriate size for the shrimp farms in Iran.

Steel industry is considered as one of the most important component of industrialization, and most of the developing countries wish to have prosperous steel plants. Despide possessing a good potential in energy, mineral and human resources, we do not yet enjoy a major share in the world steel trade. Based on favorable economic returns in steel industries, we would expect to profit from our comparative advantages. In this research we examine the/actors which reduce the production costs, and we try to identify the most suitable cost functions. Our model consists of translog cost functions, and show how the Esfahan steel mill could profit from the ECONOMIES of SCALE. Through the "Iterative seemingly Unrelated Regrenions" , we observed that this plant may have considerable ECONOMIES of SCALE.