Task: You have to write a Business Report on microeconomics assignment where you address the following five (5) tasks: Task 1: What is the dirham value of the Economic profit and Accounting profit in this case study?. (Computations to arrive at the required result must be shown in the Appendix) Why are the two values different? Task 2: Explain to Teena the meaning of “normal profit”. Does she need to exit the market if she is earning a normal profit? Task 3: Calculate the elasticity of demand for both coffee and sandwiches when the price changes from AED20 to AED25. Calculations must be in the Appendix. Task 4: Explain the concept of price elasticity of demand to Teena and advise her about her pricing strategy for both coffee and sandwiches. Do you think it is a good idea for her to increase the price of both items from AED 20 to AED 25? Justify your answer. Task 5: Given the information provided describe the type of market Teena’s coffee shop is operating in. Make sure you explain the features and the behavior of firms in this type of market.
Subject Name: Economics
Level: Postgraduate
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