Question 1:
a) Trace out the process of deriving the long run average cost curve.
b) Where would a rational producer choose his point of operation with respect to LAC?
Question 2: Describe the shape of LAC by using the different concepts of RTS.
Question 3: Describe the fundamental idea behind the economies of scope.
Question 4: The learning curve imitates the efficiency gains resultant from the cumulative total of all output produced till date. Explain.
Question 5:
a) Deduce the concept of economies of scale and scope.
b) Analyze this concept:
• In purchasing
• In advertising
• In R & D
Question 6:
a) Define the term cost reduction strategies.
b) Analyze the fundamental concept of cost reduction strategies.
c) Describe the factors which influence cost reduction?
Question 7:
a) Differentiate between the cost reduction and cost control strategies.
b) What are the merits and demerits of the cost reduction?
Question 8: Describe in detail the concept of the operating leverage.
Question 9:
a) Define the term idea of BE.
b) Analyze the basic concept by taking the linear TR and TC schedules.