Q. 135.0( 1 Vote )
a) Elasticity of Supply at point L = Supply Curve intercept on X-axis/ Supply at point L
Draw a perpendicular from point L on the axis, say at OQ,
The intercept of the supply curve coincides with the origin. Therefore, Es at point= OQ/OQ = 1
Profit is the return that the producer gets from his capital invested in the business. Total costs include payments done for the primary input.
Total cost =implicit cost+ explicit cost
Implicit cost: Costs owned by the producer for the resources.
Explicit costs: the cost of hiring labour, purchasing raw material etc.
Rate this question :