Nora quits her job as a computer programmer where she was earning RM50,000 a year, to start her own computer software business in a building that she owns and was previously renting out for RM36,000 a year. In her first year of business, she makes a revenue of RM100,000 and has the following expenses: ? Rent: RM0 ? Other expenses: RM25,000 Should Nora be celebrating? Why?

3. The following are cost functions of a firm: TP Fixed Variable Total Marginal Average Average Average cost cost cost cost fixed variable total cost cost cost 100 125 145 157 IN OUT A W N H O 177 202 236 270 326 398 10 490 Fill in the columns above. b) Sketch a diagram to show relationship between ATC and MC4. The following table shows total output corresponding to the number of workers a firm employs. Number of Total product Total Revenue Marginal Marginal worker (L) physical revenue product of product of labour (MPL) labour (MRPL) a) How many workers does the rm has to hire to maximise its prot, if the wage rate is RM18? Why? b) How manyr workers will the firm hire if the wage rate is raised to RM27