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Returns to Scale in Metal Industry of Latvia
As we can see from 2005 till 2007 there was increase in returns of company, but, after 2007, when company modernized the equipment, profit started to decrease. But it is gradually going to normalize. If LM will continue producing same amount of production using same amount of labor (or more production and more labor) soon they will achieve very good results.
As company is expanding, for sure, it is needed to hire new labor and new equipment, what means that production of company will increase.
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