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Define the returns to scale in production technology.
Returns to scale in production technology:
Assume that we are using some vector of inputs x to generate some output y and we choose to scale all inputs up or down through some amount t = 0. What will occur to the level of output? The concepts of returns to scale can be used to answer this problem. Returns to scale consider to how output responds while all inputs are varied in similar proportion so that they consider long run production processes.
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explain the central problem of economy with production possibility curve?
This is the practice of maximizing profits and revenues and minimizing costs, using marginal analysis.
advantage dis advantage of pure monopoly
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STETE THE THEORIES OF DETERMINATION OF RENT
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