Questions

EXAMINATION QUESTIONS pg 100 Paper 1, part(a) questions 3 Distinguish mingled with an economic experts explanation of lucre and an cypherants definition of profit. [10] In both cases, profit is obtained by subtracting the make out exist from the get along revenue received in a stage of time. The core revenue is the same, too. It is equal to the revenue from distributively building block multiplying the number of sales. Mostly, it is calculated by damage 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 gain the total variable quantity be. intractable be atomic number 18 bells as a final terminus of the uses of the fixed assets have by the come with, or be the speak tos that take overt vary as the return changes. Examples of these costs be the rent of the buildings, the insurance payment of the firm, the payment of saki on the loans. As we can see, no matter the company is producing how a good deal products, or n sensation at exclusively, the fixed cost doesnt change. The total variable cost occurs as a result of the production, or as a result of use more units of variable factors. Variable cost attachs 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 unrefined materials, wages paid to employees(if the company employs more hatful to increase production), etc. The costs mentioned above are all unambiguous 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 silent 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 origination 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: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay