Study reveals how output growth impacts economy and business cycles.
The article discusses how the size of a company affects its efficiency. When output grows faster than inputs, the company is more efficient. This can happen due to various reasons like fixed costs, lower costs as production increases, or new types of inputs. These factors have big impacts on how companies grow, trade, and go through cycles of success and struggle. It's tricky to measure and define these efficiency gains because it depends on how you look at the data and for how long.