QUESTION 1 (20 MARKS) (a) (b) For each of the scenario below facing by the owner of Firm ABC, explain briey whether the cost is explicit or implicit and state the opportunity cost if there is any. Assume that the business owner, Mr. ZZ can invest the money elsewhere with 10 percent annual returns. CLO2 (10 Marks) 1. ii. iii. iv. V. Mr ZZ starts the business using $100 000 cash from his saving accounts. k2 marks) To hire one data analyst, Mr ZZ needs to pay $100 per hour. Assume that Firm ABC will hire 50 000 hours of data analyst this year. (2 marks) Mr ZZ owns the building for the business of Firm ABC, the building was purchased for $9 million five years ago but is now worth $20 million. (2 marks) Mr ZZ rejects an offer to be appointed as CEO of Firm XYZ with the salary of $50 000 a month. (2 marks) The raw material costs spent by Firm ABC is almost $100 000. (2 marks) Explain each of the statements below in 100 words: CLOl (10 Marks) 1. ii. iii. iv. You have been appointed as an economic consultant to a famous fast-food company in Malaysia. Based on your preliminary ndings, you found out that products of this company are price inelastic. What is your advice on the pricing strategy for this company? (2.5 marks) \"Demand for housing in sub-urban area is more elastic than demand for housing in the city area.\" (2.5 marks) \"Recently, the government has attempted to pass laws taxing the sale of sugary drinks such as carbonated drinks\". If this law passes, what will happen to the demand of sugary drinks? (2.5 marks) \"In the labor market, if the government imposes a minimum wage that is below the equilibrium wage, nothing will happen to the wage rate or employment\". (2.5 marks)