Question: a. Why is it important to differentiate between explicit and implicit cost? Include a numerical example to explain. (1 mark) b. Use a numerical

a. Why is it important to differentiate between explicit and implicit cost? Include a numerical example to explain. (1 mark) b. Use a numerical example to illustrate and explain the concept of marginal product of labour. Explain how changes in marginal product of labour affects marginal cost and marginal returns. (3 marks)

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a It is important to differentiate between explicit and implicit costs because they represent different aspects of the total costs a firm incurs in it... View full answer

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