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The market consists of a couple of large firms producing around 1,000,000 units each, multiple medium-sized firms producing 100,000 units each and a huge amount

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The market consists of a couple of large firms producing around 1,000,000 units each, multiple medium-sized firms producing 100,000 units each and a huge amount of small firms (yours included) producing around 10,000 units each. After running the same regression for both big and medium-sized firms you obtain the following: Medium-sized: In (C) = -3.68 + 0.34 In(r) + 0.66 In(w) + 1.05 In(y) Large firms: In(C) = -5.05 + 0.33 In(r) + 0.67 In(w) + 1.15 In(y) c. Determine the production functions associated with Medium and Large firms respectively and comment on the returns to scale

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