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Firm making excess profits - PowerPoint PPT Presentation

Ch. 6: Economies of Scale, Imperfect Competition, and International Trade

Ch. 6: Economies of Scale, Imperfect Competition, and International Trade. Constant Returns To Scale. The models we have looked at previously all assumed constant returns to scale. Constant returns to scale means if all of the resources are doubled, output will be doubled as well.

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Firm making excess profits - PowerPoint PPT Presentation

Ch. 6: Economies of Scale, Imperfect Competition, and International Trade