problem 1:

a) Trace out the process of deriving the long run average cost curve.

b) Where would a rational producer choose his point of operation with respect to LAC?

problem 2: Describe the shape of LAC by using the different concepts of RTS.

problem 3: Describe the fundamental idea behind the economies of scope.

problem 4: The learning curve imitates the efficiency gains resultant from the cumulative total of all output produced till date. describe.

problem 5:

a) Deduce the concept of economies of scale and scope.

b) Analyze this concept:

• In purchasing
• In advertising
• In R & D

problem 6:

a) Define the term cost reduction strategies.

b) Analyze the fundamental concept of cost reduction strategies.

c) Describe the factors which influence cost reduction?

problem 7:

a) Differentiate between the cost reduction and cost control strategies.

b) What are the merits and demerits of the cost reduction?

problem 8: Describe in detail the concept of the operating leverage.

problem 9:

a) Define the term idea of BE.

b) Analyze the basic concept by taking the linear TR and TC schedules.