John is a plumber and decides to star his own business after being a salaried employee for 10 years.We have the following information on his business after a year.Use this information to answer questions 36to 43.

previous earnings as a salaried worker =R70 000/R60 000

annual lease on building= R30 000/R25 000

Payments to workers =R150 000 / R120 000

utilities(electricities,water,disposal)costs=R15 000/R12 000

John's potential economic profit from the next best entrepreneurial activity = R50 000

entrepreneur's forgone interest on funds used to finance business = R8 000

John' explicit costs are:

John's implicit costs, including a normal profitare

John's total economic costs are:

John's accounting profit is:

John's economic profit is

If John's total revenue exceed its total costs,including a normal profit by

If other thing are equal,John's revenue fell to R157000

T-Shirt Enterprises is sellingin a purely competitive market. it's output is 300 units which are selling at R10 each. At this level of output, marginal cost is R1 and AVCis R1.50. The firm should:

A monopolist cansell 20 toys per day for R8 each. To sell 21 toys per day, the price must be cut to R7. the marginal revenue of the 21st toy is:

A monopolist can sell 20 units of a product per day at a unit price of R10.To sell anotherunit it must reduce price to R9. The marginalrevenue of the 21st unit is:

A firm sells a product in a purely competitive market.The marginal cost of the product at the current output of1000units isR2.50.The minimum possible AVC is R2.The market price of the product is R2.50.To maximize profit or minimizelosses, the firm should:

A monopolisticfirm has a sales schedules such that it can sell 10 prefabricated garages per week at R10000 each, but if it restricts its output to 9 per week, it can sellthese at R11 000 each. MR of the tenth unit of sales per week is:

Suppose a pure monopolist can sell 5units of output at R4per unit and 6units atR3.90perunit.Themonopolist will produce and sellthe sixth unit if it marginal cost is: