Economies of Scale and the IBM System/360 Cost functions among five System/360 models are analyzed through examinations of instruction times, program kernels and a "typical" instruction mix. Comparisons are made between the data developed here and Grosch's Law which seems to be applicable to much of the data. Sizable economies of scale are unquestionably present in computing equipment. CACM June, 1966 Solomon Jr., M. B. CA660604 JB March 3, 1978 8:57 AM 1417 5 1417 1417 5 1417 1417 5 1417 1653 5 1417 2387 5 1417 2852 5 1417 963 6 1417 1069 6 1417 1417 6 1417 1417 6 1417 1417 6 1417 1771 6 1417 2345 6 1417 2387 6 1417 2479 6 1417 3190 6 1417