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Cost Reduction
Positive measures to effect a lowering of costs include:
reducing national insurance contributions (an ad valorem tax on employing labor);
improving the supply and quality of labor, e.g. by developing training schemes, encouraging flexible working hours to attract part-time workers, improving mobility, granting subsidies to firms to locate in the Assisted Areas where surplus workers are available;
providing advisory services.
If you have $10,000 to start a lawn-cutting business, the interest rate is 6 percent, your annual cost of raw materials are $4,000, and the earnings you sacrifice from working at a
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