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The company, which has a technology with increasing returns on scale, receives a production factor from a fixed price. The company has no budget constraints.
The company, which has a technology with increasing returns on scale, receives a production factor from a fixed price. The company has no budget constraints. In other words, it can take as many production factors as it wants and make production and increase the amount of product. How to find the input level that maximizes the product amount of this company. Explain in two sentences.
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