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Explain how diminishing returns differ from diminishing returns to scale.
The answer should clearly distinguish among SR (one or more factors are fixed) and LR (where all factors are variable).
Diminishing returns (marginal returns) arise in the SR and diminishing returns to scale in the LR caused by for instance efficiency lags in ever-larger firms.
#question.what is meant by ppc?illustrate the central problems of aneconomy with this curve.
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if nominal GDP in 2002 exceeds nominal GDP in 2001, did real output rise?
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