Business Economics

a) Explain what is meant by the terms Marginal. Short Term and Long Term costs in a business economics context. 15% b) Explain how economies of scale and diseconomies of scale can arise in a business. 20% c) Using appropriate illustrations incorporating average variable. average fixer and marginal cost curves explain how a company would: (i) operate to maximise its profits and (ii) determine whether it should cease production of a particular product. (65%)