Question: a) What is meant by Explicit and Implicit costs? (250 words) b) How does economic profits differ from Financial Profits? Give some examples (250 words)

a) What is meant by Explicit and Implicit costs? (250 words) b) How does economic profits differ from Financial Profits? Give some examples (250 words)

c) Under Perfect Competition, firms only make normal profit in the long run. Elaborate (500 words)

d) What is meant by the Gross Domestic Product (GDP). How it is measured?

e)Variations in the foreign exchange rate can impact on the profitability of businesses. Explain what measures can be taken by a firm to reduce the foreign exchange risks.

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