Question 1. (a) What is opportunity cost? Why is it reasonable to think of normal profit as a type of cost to the firm?

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answerhappygod
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Question 1. (a) What is opportunity cost? Why is it reasonable to think of normal profit as a type of cost to the firm?

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Question 1.
(a) What is opportunity cost? Why is it reasonable to think of
normal profit as a type of cost to the firm?
(b) Explain why it is possible to have diminishing returns for
one input and constant returns to scale for both inputs.
(c) What happens to the price elasticity of supply of a certain
good if a substitute, complementary and Supplementary goods arise
in the market.
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