a. Differentiate between the following as used in economics: i. Diminishing Marginal Utility and Diminishing marginal returns. ii. Specific tariff and Ad Valorem tariff. iii. Explicit and implicit costs. b. Assume you own and manage your manufacturing unit where you receive total revenue of $50 000. Other relevant financial information is given below: Inputs Cost($) Raw material 20 000 Labour 8 000 Rent 10 000 Interest 5 000 i. Calculate Accounting profit. ii. If your other employment opportunity is to earn P10 000 per month working at a software company, what will be your economic profit? Would you be prefer to continue with the Business? Explain. c. Identify any three (3) features a monopoly market structure.
a. Differentiate between the following as used in economics:
i. Diminishing
ii. Specific tariff and Ad Valorem tariff.
iii. Explicit and implicit costs.
b. Assume you own and manage your manufacturing unit where you receive total revenue of
$50 000. Other relevant financial information is given below:
Inputs Cost($)
Raw material 20 000
Labour 8 000
Rent 10 000
Interest 5 000
i. Calculate Accounting profit.
ii. If your other employment opportunity is to earn P10 000 per month working at a software
company, what will be your economic profit? Would you be prefer to continue with the
Business? Explain.
c. Identify any three (3) features a
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