However, the cross-section area of the pipe determines the volume of chemicals that can flow through it. The

calculations in Table 7.15 show that a pipe which uses twice as much material to make (as shown by the

circumference) can actually carry four times the volume of chemicals because the pipe's cross-section area

rises by a factor of four (as the Area column below shows).

Circumference (

)

Area (

)

4-inch pipe

12.5 inches

12.5 square inches

8-inch pipe

25.1 inches

50.2 square inches

16-inch pipe 50.2 inches

201.1 square inches

TABLE 7.15 Comparing Pipes: Economies of Scale in the

Chemical Industry

A doubling of the cost of producing the pipe allows the chemical firm to process four times as much material.

This pattern is a major reason for economies of scale in chemical production, which uses a large quantity of

pipes. Of course, economies of scale in a chemical plant are more complex than this simple calculation
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