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While answering a question in an interview, if the interviewer's eyes are bright and his or her head is nodding vigorously, end your answer, but expand it if the interviewer's eyes are glazing over.
Constant Returns to Scale
A situation in which the proportionate increase in inputs leads to an equal proportionate increase in outputs, meaning costs and outputs scale equally as production expands.
Diseconomies of Scale
A situation where a business's cost per unit increases as it produces more items, due to inefficiencies that arise with scaling up production.
Plant Size
Refers to the physical capacity or output level of a manufacturing or production facility.
Output Levels
The quantity of goods or services produced by a company, sector, or economy in a given period of time.
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