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If a firm confronts economies of scale, a 20 percent increase in labor: and all other inputs will increase output by more than 20 percent.
If a firm confronts economies of scale, a 20 percent increase in labor: and all other inputs will increase output by more than 20 percent. with capital fixed will increase output by 20 percent. with capital fixed will increase output by more than 20 percent. and a 20% increase in capital will increase output by 20 percent
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