'I'he economies of scale curve ior fowl in Figure 7 is neither as smooth 

 nor as pronounced as that for broilers. In fact, one might interpret two 

 curves from the data shown; one for the 120 to 480 fowl per hour plants 

 and another for the 900 size and above. The discrepancy between the 480 

 and 900 sizes occurs because of the introduction of additional mechanized 

 equipment in the latter model. Since the calculations with respect to fowl 

 represent the capacities of model broiler plants converted to processing 

 fowl, it may be that the combinations of capital and labor are not optimum. 



Unit 



Costs for 

 Processing 



8 



30 



1 



J 



40 50 60 70 80 90 100 



PERCENT OF CAPACITY 



110 



120 



130 



Figure 6. Broilers: Average Cost Curves for 10 Model Plants. 



19 



