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A Level Economics:

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hi, can you explain the equi marginal theory to me with examples?
This theory explains how to use the money income on two different products to get maximum utility.
A consumer should use his money income on two products in such a way that the last dollar spent on each product must give equal level of satisfaction.
It is also known as utility maximization rule. Folwowing condition must be satisfied to maximize utility.
MUA/PA=MUB/PB
 
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O level Economics Nov 2012 paper 12 answers
1. opportunity cost
2. people's wants are changing and increasing always
3. land, labour and enterprise fall and capital rise
4. production is determined by consumer wishes
5. cost borne by fishing community
 
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6. the price of commodity
7. no change in demand but supply shifts to the left
8. revenue will rise by 20%
9. increase in travel time due to road accidents
10. supply shift to left and demand also shifts to the left and new equilibrium is at D
 
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11. decrease in qualification needed to be doctor reduces earning gap between doctor and driver
12. more people willing to work in shoe industry reduces ability of trade union to raise wages
13. high interest rate
14. ank notes are generally acceptable
15. dealing in foreign exchange
 
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16. 50-62 age group saves the hieghest proportion of their income 29%
17. availabilty of training in local colleges

18. the component parts of bicycle
19. horizontal integration
20 cooperative
 
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21. where ATC continously falls in A
22. it achieves average cost lower than if there were many suppliers
23. increasing tax on fuel
24. economic growth and distribtion of income
25. decreasing income tax
 
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