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QUESTION
a) Differentiate between price, income and cross elasticity's of demand.
b) How can the concept of price elasticity be useful to the owner of a supermarket who wants to maximise sales revenue? Explain your reasoning, with the help of appropriate examples and diagrams.
c) Distinguish, with the help of diagrams and examples, between a firm's fixed cost and variable cost.
d) Explain why all firms aim at growing big in size.
If the Government decreases the interest rates on capital goods such as new plant and equipment and building. Investment also include spending on working capital such as stocks of
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There are three industrial firms in a quaint town of South Orange where the municipal government wants to reduce pollution to 120 units from uncontrolled level of 210 units. Three
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