Question 1 (d)

Economic Profit versus Accounting Profit How an Economist Views a
  Firm Economic profit Implicit costs Revenue Total opportunity costs
  Explicit costs How an Accountant Views a Firm Accounting profit
  Revenue Explicit costs

Question 2 (d)

  • Owing to the tax, the market is no longer allocatively efficient because total surplus decreases / the tax creates a dead-weight loss.

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