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– Nelson Mandela

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Q 1. Explain how price elasticity is important to business decision making 2. Employ marginal revenue (define an example) 3. Describe how economies of scale influence competition within industries. 4. Distinguish between economies of scale and economies of scope

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A crucial role is played by the demand elasticity concept in the decisions of pricing of the government and the business firms when price is regulated. The price elasticity concept is vital in