Economics (Irwin Economics)
Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 9, Problem 4P
To determine

Economies of scale in fencing.

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A weaver working with a handloom is able to produce 13 yards of fabric per day. The typical weaver is paid £12 for a day's work. A loom powered by a steam engine is able to produce 117 yards of fabric per day. The powered loom still needs a worker to operate it, earning £12 per day, but also needs 25 pounds of coal to power it. At what price per pound of coal does the cost of producing fabric by power loom equal the cost of producing it by handloom? Round your final answer to two decimal places.
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