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.
a) Deduce the concept of economies of scale and scope.
b) Analyze this concept:
• In purchasing
• In advertising
• In R & D
a) Define the term cost reduction strategies.
b) Analyze the fundamental concept of cost reduction strategies.
c) Describe the factors which influence cost reduction?
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.
a) Define the term idea of BE.
b) Analyze the basic concept by taking the linear TR and TC schedules.