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Problem:
i) What do you meant by the term ‘economic efficiency'?
ii) By using appropriate examples differentiate between fixed and variable costs.
iii) Consider different markets explain how a given firm can increase its overall profitability by pure manipulation of its pricing policy?
iv) A perfectly competitive firm is better than a monopolistic firm in terms of economic efficiency. Discuss.
v) Explain the measures governments can use to control monopolies.
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