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ABDenson Company Had Been Employing 6 Workers and 8 Tons

question 58

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A.B.Denson Company had been employing 6 workers and 8 tons of raw materials, using 2,000 square feet of plant space.The firm increased its work force to 12 workers utilizing 16 tons of raw materials in a plant space increased to 4,000 square feet.Total number of units of output increased from 78 to 160.What kind of returns to scale is the firm experiencing? Defend your answer.


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