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What are economies and diseconomies of scope? What situations can give rise to each of these outcomes? How can you use marginal analysis to design

  1. What are economies and diseconomies of scope? What situations can give rise to each of these outcomes?
  2. How can you use marginal analysis to design incentives to encourage hard work? What are some of the difficulties in designing incentives? Are incentives fair? Why or why not?

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