(a) Advise the Managing Director whether the company should accept the offer from South Wales. Your advice...
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Question:
(a) Advise the Managing Director whether the company should accept the offer from South Wales. Your advice should include considering whether or not the factory capacity should be increased.
(b) Explain the factors that have to be kept in mind by the Managing Director before accepting 4 Please turn over the order.
(c) Does it make sense for a company to sell a product at a price below total cost but above marginal cost? Explain the circumstances under which the prices of products could be fixed below marginal cost.
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