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This method relies over the speculation of linear relations concerning inputs and outputs. Because of this inputs and outputs is often extra, multiplied and divided. But the relations in between inputs and outputs will not be generally apparent. In serious life, most of the relations are non-linear.

For getting the amount created of commodity M1, we substitute M2 = 4 while in the constraint equation of enter Y.

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Microeconomics assumes whole output and income to supplied and continuous and analyzed the allocation of assets amid competing works by using.

Shopper desire concept relates preferences with the consumption of both merchandise and products and services to the consumption expenses; in the end, this romance among preferences and consumption expenditures is utilized to relate Tastes to shopper demand from customers curves.

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