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Contributions of economic theory to business economics According to Baumol, there are 3 key contributions of economic theory to business economics. 1. Practice of building
FACTORS RESPONSIBLE FOR WAGE DIFFERENTIALS BETWEEN OCCUPATIONS The major cause is demand and supply for the particular labour concerned, but other causes could be: i.
Demand management policies These policies are intended to increase aggregate demand and, therefore the equilibrium level of national income. They are sometimes called fiscal a
PROBLEMS OF USING PER CAPITA INCOME TO COMPARE STANDARD OF LIVING OVER TIME 1) The composition of output may change. e.g. more defence-related goods may be produced and
Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2
What are the limitations of managerial economics
b) Discuss the validity in Zimbabwe of the grounds on which the profit maximising model of the firm has been defended.
wHAT IS THE SIGNIFICANCE OF EXPECTATION ELASTICITY ?
Theories associated with different market structures A firms profit maximising output decisions take into account the market structure under that they operate. There are 4 type
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