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QUESTION:
a) How do returns to scale and returns to factor affect the shapes of the AC in the Long-run and short-run respectively?
b) "Standard of living has to be measured using both monetary and non-monetray measures." Comment on this statement.
c) Explain using diagrams, how is consumer surplus related to the price elasticity of demand?
d) Reducing occupational immobility of labour is the only way of decreasing the level of unemployment. Discuss.
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types of welfare economics
With a background from the previous section we now study some of the critical characteristics of policy process. You have already studied earlier various technical theories relatin
Q. What do you understand by Policy Process? Begin from theoretical frame work of policy making and proceed breaking various assumptions and introducing heterogeneity of agents
Q. Define Heterogeneity? We know that breaking of the assumptions of homogeneity of agents, in welfare economics, makes it difficult to define social welfare function. Breakin
what is volume of production and the factors influencing them
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