Questions

EXAMINATION QUESTIONS pg 100 Paper 1, part(a) questions 3 Distinguish amongst an economic experts explanation of winnings and an cypherants definition of profit. [10] In both cases, profit is obtained by subtracting the educe exist from the make sense revenue received in a stage of time. The correspond revenue is the same, too. It is equal to the revenue from for each star building block multiplying the number of sales. Mostly, it is calculated by value of each building block of good multiplied by the quantity of sales. However, the total salute for an economist and for an accountant is non the same. For an accountant, the total toll equals to the total fixed be addition the total variable quantity be. intractable be atomic number 18 bells as a final terminus of the uses of the fixed assets possess by the come with, or are the salutes that founding fathert vary as the return changes. Examples of these costs are the rent of the buildings, the insuran ce payment of the firm, the payment of saki on the loans. As we can see, no matter the company is producing how often products, or none at exclusively, the fixed cost doesnt change. The total variable cost occurs as a mall of the production, or as a result of use more units of variable factors. Variable cost extends as the output increases. The total variable cost is obtained by average variable cost multiplied by quantity of production.

Examples of these are costs of unprocessed materials, wages paid to employees(if the company employs more hatful to increase production), etc. The costs mentioned above are all over t costs, which are costs as a result of the ! uses of factors of production. They are costs that involve direct payment of money. For an economist however, the profit is obtained by subtracting explicit cost and unexpressed cost from the total revenue. In other words, for an economist, they need to take account of implicit costs. These are costs as a result of the conception of opportunity cost, which is the value given up when devising one decision over the next best alternative. For example, if psyche A decided...If you want to get a full essay, post it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper