Why would they need to know the elasticity of demand
Problem
Why is elasticity important from a business owner's point of view? Why would they need to know the elasticity of demand for their firm's products? Explain/Discuss.
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Define the economies of scale and illustrate this economic concept using the total cost (TC) and average cost curve (ATC) and explain potential reasons for each
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Why is elasticity important from a business owner's point of view? Why would they need to know the elasticity of demand for their firm's products?
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Use the law of diminishing returns to explain why MP initially increase then decrease. Use law of diminishing returns to explain why the MC and AVC curves are.
Calculate the marginal product of labor and comment on what will happen as L increases. Why?
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