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Suppose It Takes 30 Workers and 120 Units of Capital

question 56

Essay

Suppose it takes 30 workers and 120 units of capital to produce 300 trucks a day.How much labour and capital is involved in producing 900 trucks a day if the firm experiences constant returns to scale?


Definitions:

Unconventional

Unconventional refers to something that does not follow traditional or expected norms, methods, or practices.

Illogical

Lacking in sound reasoning or coherent argumentation, often leading to conclusions or actions that defy rational thought.

Ambiguous

Open to more than one interpretation or having a double meaning.

Emotions

Complex psychological states involving an individual's physiological response, subjective experience, and behavioral expression in response to stimuli.

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