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Carefully Define Returns to Scale, and Explain How This Differs

question 39

Essay

Carefully define returns to scale, and explain how this differs from marginal returns.


Definitions:

Probability Of Success

The likelihood of achieving a desired outcome or result in an experiment or project.

Random Variable

A variable whose outcomes are determined by chance, used in probability theory and statistics.

Independent

Not influenced or controlled by others; in statistics, two variables are independent if the occurrence of one does not affect the probability of occurrence of the other.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, used as an indicator of uncertainty or volatility.

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