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Transcription of this question: 2.(a)(b)(c)Define the following terms:(i) economies of scale (line 121)(ii) just-in-case stock (line 140).Explain how Kos Palouk’s fixed and variable costs would be affected bypursuing Option 2 (lines 150—152).Analyse the advantages and disadvantages for Kos Palouk Of pursuingOption 2 (lines 150—152).[2 marks][2 marks][4 marks][7 marks]

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