List and explain the properties of indifference curves.[10 marks]
(a) List and explain the properties of indifference curves.[10 marks]
(b) Explain with the aid of a diagram the income and substitution effects and use the concepts to describe what happens when the price of a product decreases. [10 marks]
(a) Carefully explain what is meant by explicit; implicit; and sunk costs. How are they used to calculate accounting profit and economic profit? [5 marks]
(b) Explain the relationship between total product, marginal product, and average product. [5marks]
(c) Explain the difference between the short run and the long run. [5 marks]
(d) Define economies and diseconomies of scale and explain why they occur.
