1.

a) Apply the geometric method to determine the elasticity of supply at point L on the supply curve SS given above. b) Justify the statement, ‘In economics, normal profits are always a part of total cost’.

Answer»

a) Apply the geometric method to determine the elasticity of supply at point L on the supply curve SS given above.

b) Justify the statement, ‘In economics, normal profits are always a part of total cost’.



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