Question # 01 a. Think of setting up some kind of easy business like establishing a beauty salon, a private school or any other. This would involve various kinds of costs going into it. Can you categorize such costs into two distinct groups of implicit and explicit costs and justify why a certain cost belongs to each category? b. Moving ahead with your business proposal as said in the above point, separate Variable Cost (VC) and Fixed Cost (FC) with justification? Demonstrate with cost curves, how could TC and MC be helpful in reaching to optimum production level for your business? c. If you plan to scale up to become large business concern at national or international level, then mention economies and diseconomies of operating at large scale?

Question # 01 a. Think of setting up some kind of easy business like establishing a beauty salon, a private school or any other. This would involve various kinds of costs going into it. Can you categorize such costs into two distinct groups of implicit and explicit costs and justify why a certain cost belongs to each category? b. Moving ahead with your business proposal as said in the above point, separate Variable Cost (VC) and Fixed Cost (FC) with justification? Demonstrate with cost curves, how could TC and MC be helpful in reaching to optimum production level for your business? c. If you plan to scale up to become large business concern at national or international level, then mention economies and diseconomies of operating at large scale?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 14E

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