Microeconomics Answers

Mr. GIRUM opened a cafeteria called “ETHIO café” in Harar town on may1,

2022. The costs he incurred during one month of its operation are the following;

Purchased boiling machine for 10,000 birr, Paid wage for waitresses(workers)

amounting 2000 birr, Bought working materials for 5000 birr, Paid a rent on cafe’s

house amounting 2000 for the month. The chairs and tables used in the cafeteria are

previously owned by Mr. Girum and the current market price for this furniture is

estimated to be 3000 birr. The owner is running the business as a manager, but other

cafeteria owners have been asking Mr. Girum to manage their cafe paying him 3000

monthly salary. The total income the café generated during the month is 35,000 birr.

Then calculate

a. Accounting cost

b. Economic cost

c. Accounting profit

d. Economic profit

Each of us has only 24 hours in a day .How do you go about allocating your time in a given day among competing alternatives? How do you go about weighing the arternatives? Once you choose a most important use of time ,why do you not spend all your time on it? Use the notion of opportunity cost in your answer.

When willl an individual lab out supply curve bend backwards

Explain with help of appropriate diagrams the effect that a fall in price of good x may have on the equilibrium price and quality of good Y consumed?

Product x has a price of $25 with fixed cost of $200 .find it's profit if marginal cost is $20