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What are the limitations of balanced growth?
The limitations of balanced growth:
• The strategy of balanced growth is away from the resources of most poor countries;
• Government planning results within government failure that is government intervention into the market fails to bring about an efficient provision of resources for example planning process makes a bureaucracy. For a complete discussion notice why state approaches are sometimes seems as unsuitable for promoting development.
• LDC development policies considering onto import substitution, agricultural self-sufficiency as well as state control of production yield poor growth.
Assume the firms cost function is: C(Q)= 100+10Q+Q^2 , Determine whether this industry is a natural monopoly when the demand function is: 1) D(P)= 100-3P 2) D(P)= 90-3P 3) D(P)= 10
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