Calculate firms revenue accounting cost and implicit cost

Reference no: EM133494779

Problem

Assume you start a business in Pakistan after graduating from Holmes Institute. At the end of your first business year you receive your business summary as below from your economic advisor. Assume you convert the Pakistani Rupees into Australian dollars. Answer the questions that follow. Item Fixed cost Variable cost Economic cost Accounting profit/ (loss) Economic profit (loss) Cost (AUD) 80,000 10,000 91,000 (5000) (6000).

Question 1. Calculate your firm's revenue, accounting cost and implicit cost.

Question 2. Explain what you understand by the term shutdown.

Question 3. Would you shut down your business. Explain you answer.

Question 4. Examine the market entry barriers that deter other firms from entering the market structure for distribution of consumer goods and services in Pakistan.

Reference no: EM133494779

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