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(16 points) A rm can produce its output at one large factory using (X1, X 2) or at m identical factories each using (X 1

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(16 points) A rm can produce its output at one large factory using (X1, X 2) or at m identical factories each using (X 1 / m, X 2 / m). The production function is given by q=AK\"L['. Explain why the sum of the two parameters, a and b, has implications for pursuing a large- or small-scale production strategy

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