Question: QUESTION THREE (20 marks) 3.1 Differentiate between the shut-down rule and the profit maximising rule. (6 Marks) 3.2 Using examples distinguish between fixed inputs and

QUESTION THREE (20 marks)

3.1 Differentiate between the shut-down rule and the profit maximising rule. (6 Marks)

3.2 Using examples distinguish between fixed inputs and variable inputs. (4 marks)

3.3 Differentiate between marginal cost and marginal revenue. (4 marks)

3.4 Compare and contrast accounting profit, normal profit and economic profits. (6 marks)

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