The Abner Corporation, a retail seller of television sets, wants to determine how many tele vision sets it must sell to earn a profit of $12,000 per month. The price of each television set is $300, and the average variable cost is $100.

a. What is the required sales volume if the Abner Corporation's monthly fixed costs are $5,000 per month?

b. If the firm sells each television set at a price of $350 rather than $300, what is the required sales volume?

c. If the price is $350, and if average variable cost is $85 rather than $100, what is the required sales volume?

All though all countries throughout the world have to face similar economic problems the economic system they adopt as a means of dealing with them will differ. Essentially there are three approaches to tackling the economic problem of allocation, distribution and utilization of resources. Comment on all the three approaches and reason out which approach will work out in UAE as a country.