Show That Increasing Returns to Scale Can Co-Exist with Diminishing

question 67

Essay

Show that increasing returns to scale can co-exist with diminishing marginal productivity.

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Definitions:

Optimistic Time

The shortest amount of time in which a task or project phase can realistically be completed, assuming everything proceeds better than is normally expected.

Crash Duration

The minimum time period needed to complete an activity or project phase by allocating the maximum resources.

Crash Cost

The additional costs associated with rushing or compressing a project schedule to complete it in the shortest time possible.

CPM Network

Critical Path Method Network, a project management tool that helps in determining the longest path of planned tasks to the end of a project.