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1) Provide a description of the required factors of production, grouping them according to whether the factors of production are
a) Fixed and hence unlikely to vary much according to the quantity of goods sold (e.g. overheads); or
b) Variable and hence likely to increase with increased production
Use the above information to comment on the likely overall cost structure of your business .
For example: Are fixed costs large or small relative to variable costs? Does this mean that the firm's 'optimal' size is likely to be small, medium or large?
two person zero sum game
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