When the average cost curves for the 10 model plants are plotted in 

 relation to percentage of capacity for fowl (30 to 130 percent), unit costs 

 are successively lower for each percentage level as plant size increases from 

 2.300 to 6,000 fowl per hour, A substantial difference exists from the 120 

 to 480 sizes. However, economies are irregular within the 480 to 1,600 

 range (Figure 8) . 



Importance of Cost Group in Producing Economies of Scale 



Analysis of model plant costs was made in accordance with the groupings 



developed in Chapter II. All items do not contribute equally to establishing 



Unit 



Costs for 

 Processing 



8 



oL 



30 



1. 



1 



1 



I 



J 



40 



50 



60 



no 



120 



Figure 8. 



70 80 90 100 



PERCENT OF CAPACITY 

 Fowl: Average Cost Curves for 10 Model Plants. 



21 



130 



