Question: QUESTION ONE (20 marks) 1.1 Differentiate with examples, total cost (TC), total fixed cost (TFC) and total variable cost (TVC). (6 marks) 1.2 Explain with

QUESTION ONE (20 marks)

1.1 Differentiate with examples, total cost (TC), total fixed cost (TFC) and total variable cost (TVC).

(6 marks)

1.2 Explain with examples, the following; (9 marks)

1.2.1 Constant returns to scale.

1.2.2 Increasing returns to scale.

1.2.3 Decreasing returns to scale.

1.3 Distinguish between explicit costs and implicit costs. (5 marks)

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