Question

Write short notes (i.e. 3-5 sentences and use relevant examples and graphs to illustrate these concepts) on the following concepts:
(a) Total Variable Cost
(b) Production Function
(c) Binding Price Ceilings
(d) Producers’ Surplus
(e) Demand Schedule
(f) A movement along a demand curve
(g) Explicit Cost
(h) Intellectual Property Rights
(i) Normal Profit
(j) Relatively Inelastic Supply
(k) Economic Profit
(l) Accounting Profit

Answer 1

Answer: a. This is all the cost associated with production of an item.

B. This is the relationship between physical input and quantities of output q=f(l, k).

C. This the price of a product below the equilibrium price.

D.difference between marginal feel accepted by producer for a product and how much can be received for selling at market price.

E. This is a table showing different quantity demand at different prices.

F. A movement along a demand curve occurs when a change in demand occurs because of change in price.

G. Direct payment injured while running a business that is wages, rent and materials.

H. These are new invention made by people in art, science, literature.

I. This is when total revenue balances with the total cost of carrying out production in a competitive market.

J. This is when a small change in product price cause large change in quantity of production of item.

K. Difference between revenues accrued from sales and cost of all inputs used with opportunity cost.

L. Difference between total monetary revenue and total monetary cost.

Explanation:the graphs attached gives the thorough explanation of a, b, c, d, e

G. Examples of intellectual property are trademarks, copyright and trademark secret.

L. The Answer: a. This is all the cost associated with production of an item.

B.q=f(l, k)