Shaalaa.com | Revenue Part 3 - Concept of Cost
A farmer invests his own saving in doing farmings but hires labour to do work. Identify implicit cost.
A producer starts the business in the building owned by him and borrows money for running it. Identify implicit cost.
A producer borrows money to run a business but manages the business himself. Identify implicit cost.
Define cost. State the behaviour of (a) Total Fixed Cost and (b) Total Variable Cost as output is increased.
An individual is both the owner and the manager of a shop taken on rent. Identify implicit cost and explicit cost from this information. Explain
From the following table find out the level of output at which the producer will be in equilibrium (use marginal cost and marginal revenue approach).Give reasons for your answer.