Summary of economic costs
1. Provide a brief summary of economic costs. In the short-run, why might a firm still operate even when there is a loss.
2. Critically discuss the law of diminishing returns.
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Explain a market situation in which the operating company faces economic difficulties and the need to cut costs. What cost cutting strategies might the operating company employ to remain profitable?
Provide a brief summary of economic costs. In the short-run, why might a firm still operate even when there is a loss. Critically discuss the law of diminishing returns.
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