Business I / The Industrial Revolution
Practice question · Multiple choice

According to Allen, the spinning jenny was invented in Lancashire rather than Bengal because:

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  1. Think about when it makes sense to replace labour with capital.
  2. High wages make machines profitable; low wages don't.
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C. High Lancashire wages made the machine pay

Why

Allen's point is about incentives, not ability: the machine had to pay back its cost by saving wages. Where wages were low, the payback never arrived, the same invention simply wasn't worth building.

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