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What is a SITUATION in which this might happen in a business? I dont want a numerical solution. Rat Show more What is a SITUATION in which this might happen in a business? I dont want a numerical solution. Rather I want to know what instance might occur that would cause constant returns to scale. Also I have the same question for INCREASING returns to sclae. Example response: For decr returns to scale if a firm hires double the amount of managers and also doubles all other input the managers may not be able to manage their tasks at hand because of how difficult the company has become to handle. Therefore output will be less. Show less
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