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We provide evidence that industries' supply curves are convex. To guide our empirical analysis, we develop a model, in which capacity constraints at the plant level generate convex supply curves at the industry level. The industry's capacity utilization rate is a sufficient statistic for the...
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Purpose Although slack resources and their relationship to performance have been widely studied in the literature, the … profitability. By means of hierarchical regressions, the short- term, medium- term and long-term effects of slack resources have …. Available slack has a consistent and positive effect on economic profitability in the short term. Other types of slack show …
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