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Real-World Applicationshard
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A manufacturing firm operates under the production function Q(K,L)=AKαLβQ(K, L) = A K^{\alpha} L^{\beta}Q(K,L)=AKαLβ. If the elasticity of scale α+β=1.2\alpha + \beta = 1.2α+β=1.2, what can be inferred about the returns to scale and the implication for unit costs as production increases?