A static, mixed integer programming model of the mechanical engineering sector is used to address the question of whether interdependence due to economies of scale matters. This model was originally constructed as a device to obtain an initial comparative advantage ranking of production activities prior to the design of specific projects in the Republic of Korea. Here, it is employed, first, to measure numerically the degree of increasing returns...
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1976/01/01
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Documento de trabalho departamental
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DRD18
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1
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1
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2010/07/01
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Disclosed
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The allocative consequences of economies of scale
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average cost of supply
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