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QUESTION
a) Differentiate between returns to factor and returns to scale.
b) In the long-run the Average Cost Curve is u-shaped. Discuss
c) Whenever a firm is making losses it should close down. Do you agree with this statement? You may use mathematical examples to illustrate your answer.
d) Discuss how resource allocation is dictated by consumers' preferences in the market place.
Problem 1: (a) Clearly distinguish between the theories of Comparative and Absolute advantage of trade (you are expected to use examples to illustrate your answer). (b) Acco
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Why do state approaches work into promoting development? State planning and intervention is desirable due to the shortcomings of markets. The approaches range of state through
GDp of World?
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