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Explain why subsidies to domestic firms act as a trade barrier.
A trade barrier is broadly explained as any market intervention whereby the ratio of price of exports to price of imports goes down. Therefore, a subsidy will lower the domestic price of goods - ceteris paribus - and unfairly benefit domestic producers over foreign.
what are the limitations of economies of scale?
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what do you understand by linear break-even point? in what way is it useful in managerial economics? what are the assumptions underlying the analysis?
How does a
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