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Production Scaling Analysis

A software development company initially employs 10 programmers and uses 50 units of cloud computing resources to produce 1,000 lines of functional code per week. The company then scales up its operations, employing 20 programmers and using 100 units of cloud computing resources. As a result, their weekly output increases to 2,500 lines of functional code. Does this production process exhibit increasing returns to scale? Explain your reasoning based on the proportional changes in inputs and output.

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Updated 2025-09-15

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