Ask a question from expert

Ask now

Jewellery Making Shop: Cost and Returns

12 Pages2075 Words407 Views
   

Added on  2020-11-23

About This Document

Economics QUESTION 1 1 A) 1 b) 2 c) 2 QUESTION 2 3 QUESTION 3 4 4 QUESTION 4 5 (a) determination of fixed and variable cost in jewellery making shop 5 (b) Law of diminishing returns and its relation with cost 6 QUESTION 10 8 A) 8 B) 8 QUESTION 1 1 A) External cost and benefits impact on resource allocation to great extent.

Jewellery Making Shop: Cost and Returns

   Added on 2020-11-23

BookmarkShareRelated Documents
Economics
Jewellery Making Shop: Cost and Returns_1
Table of ContentsQUESTION 1...................................................................................................................................1A).................................................................................................................................................1b).................................................................................................................................................2c)..................................................................................................................................................2QUESTION 2 ..................................................................................................................................3QUESTION 3...................................................................................................................................4..........................................................................................................................................................4QUESTION 4...................................................................................................................................5(a) determination of fixed and variable cost in jewellery making shop......................................5(b) Law of diminishing returns and its relation with cost...........................................................6QUESTION 10.................................................................................................................................8A).................................................................................................................................................8B).................................................................................................................................................8
Jewellery Making Shop: Cost and Returns_2
QUESTION 1A)External cost and benefits impact on resource allocation to great extent. Negativeexternality is the example of external cost; if it is not taken into consideration then it would helpin increasing production. This will create situation of over allocation of resources. On other handexternal benefits such as positive externality create situation of under allocation of resources inthe business unit (Kneese, Ayres and d'Arge, 2015).Figure 1 Social costSource: (Social cost and externalities, 2018)1
Jewellery Making Shop: Cost and Returns_3
Figure 2: Positive externalitiesSource: (Social cost and externalities, 2018)b)Public goods have features of no excludable and non-rivalrous. This makes easy for theproducers to sell their goods in the market. Such type of items and services are financed by Taxrevenues. Thus, good and services have become the public goods, by this way companies can selltheir material in the market easily (Public Good and Private Good: Difference, 2018). Publicgoods are consumed by everyone and private goods are rival thus, all the goods became public.Another reason of becoming public good is that these types of materials are non- rejectable.That is beneficial for the company in order to increase its production and enhancing salesrevenues.c)Privately owned engineeringand material researchpublic goodsThis is public goods because ithas non rivalry characterises2
Jewellery Making Shop: Cost and Returns_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Effect of external cost and external benefit on resource allocation
|16
|2297
|441

Organizational Behavior
|12
|1485
|159

Business Economics: Externalities, Market Structures, Efficiency and Demand
|19
|2140
|315

Economics Assignment: Price Elasticity, Clean Air, Demand for Message, Cost Analysis
|17
|3070
|103

Public Economics Study Material
|13
|1789
|91

Business Economics Assignment- Microeconomics
|14
|1935
|115