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QUESTION:
a) How do returns to scale and returns to factor affect the shapes of the AC in the Long-run and short-run respectively?
b) "Standard of living has to be measured using both monetary and non-monetray measures." Comment on this statement.
c) Explain using diagrams, how is consumer surplus related to the price elasticity of demand?
d) Reducing occupational immobility of labour is the only way of decreasing the level of unemployment. Discuss.
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