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What are constant returns to scale?
Constant returns to scale:
A constant return to scale (CRS) implies that doubling inputs precisely double outputs, which is frequently a reasonable assumption to make concerning technologies. Decreasing returns to scale implies that doubling inputs are less than doubling outputs. And also increasing returns to scale implies that doubling inputs are more than doubling outputs.
This involves the characteristics of the production human as well as non human using the product concerned. For example it may pertain to the number and characteristics of children
excess reserve make a bank less vulnerable to runs.why
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What is the marginal opportunity producing the first unit of paper? The marginal opportunity cost of producing the forth unit of paper?
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the prevalence of excess capacity is the direct consequence of the existence of monopolistic competition
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