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4. (8 points) A firm can produce its output at one large factory using (X, X, ) or at m identical factories each using (X

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4. (8 points) A firm can produce its output at one large factory using (X, X, ) or at m identical factories each using (X /m. X, /m). Explain why the returns-to- scale characteristics of the firm has implications for pursuing a large or small scale production strategy

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