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Question 1:
(a) Use indifference curves to distinguish between income and substitution effects.
(b) Hence, using the above techniques explain why the demand curve slope downwards.
Question 2:
What are the main criteria for designing a tax system? To what extent do you think the national residential property tax meet these criteria?
Question 3:
(a) What are externalities? A dyeing unit of a textile firm discharges effluents in the lagoon, polluting the water, adversely affecting a nearby hotel resort, fishermen and the community at large. Illustrate graphically why this problem results in a departure from a perfectly competitive market.
(b) What conclusions can be drawn about market allocations?
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THE BREAK EVEN POINT
Cost concept . techniques of costing . absorption costing
The F–test The significance of the regression results can be tested by using the F- statistics. The F-statistics is a ratio which compares the explained sum of squares and t
Why might managers favour this ABC system instead of the older system that allocated all MOH costs on the basis of direct? labour?
Explain Kaizen costing It is a Japanese method used to manage cost during a product s planning and design stages and has been used by some Japanese firms for over twenty years
Write a response to your boss, the controller. The response should be 2-5 pages in length (double-space). Your response to the controller should include, but not be limited to, t
Relevant costs and benefits for operating decisions: In operating decisions, concentration is on best use of existing capacity. Incremental analysis based on differential cost
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