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(a) The rational behavior of firms is to produce goods at that stage where all factors of production are fully utilized. Discuss why firms choose

(a) The rational behavior of firms is to produce goods at that stage where all factors of production are fully utilized. Discuss why firms choose this stage of production? (b) Explain with examples, why law of return to scale applies in long-run and why firms substitutes one factor of production for another factor of production?

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