# f4 econ question (new introductory economics 2 chapter 8)

Mr Wong runs a garment factory which produces a maximum of either 1000 dozen T-shirts or 600 dozen shirts a month. He pays his workers \$50 for every dozen T-shirts produced. He also employs a clerk at a monthly salary of \$8000.

1. Why can&#39;t he produce 1100 dozen T-shirts in a month?(3marks)

2. Name the factor return that Mr Wong gets from the production. Give TWO differences between this return and the wages he pays his employees.(5marks)

### 1 個解答

• Danny
Lv 6
1 十年前
最愛解答

1. It is due to scarcity. People always want more goods to be produced to satisfy more wants. They just can&#39;t because resources are limited and just insufficient to satisfy unlimited human wants.

2. Mr Wong gets profit. Wage is (1) fixed (with progression sometimes of course) and (2) relatively risk-free (unless the company shuts down) while profit is (1) variable. It (2) bear risk because it varies with the performance of the company. Profit can even be negative.