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What is Unbalanced Growth theory?
Unbalanced growth shares analysis along with balanced growth theorists which free markets cannot produce development. Planning of government intervention and co-ordination is needed.
Conversely, unbalanced growth theorists argue that adequate resources cannot be mobilised through government to promote coordinated, widespread investments into all strategic industries.
They argue that some industries along with the greatest number of backward and forward links should be prioritised. All favoured industries grow quicker than other regions of the economy.
A businessman invested $ 4000.00 as his fixed cost in a new venture that produces batteries. Each of these batteries cost $150.00 to manufacture and he sells each battery for $180.
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Importance of production.
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