Question: How do explicit and implicit costs differ?

How do explicit and implicit costs differ?

Step by Step Solution

★★★★★

3.31 Rating (178 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Explicit costs are stated clearly in terms of money and ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1431-B-E-M-E(9004).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

You have a part-time work/study job at the library that pays $10 per hour, 3 hours per day on Saturdays and Sundays. Some friends want you to join them on a weekend ski trip leaving Friday night and...

Q:

Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and implicit costs of attending college? Why does the economist classify normal profit as a cost? Is...

Q:

The proof of the Coase theorem requires that firms recognize both the explicit and implicit costs of their decision. Explain a situation where a firm's failure to curtail pollution may cause it to...

Q:

Use the table below to calculate the accounting and economic profit for Abner's Apple Art. Item Amount Macmillan Learning Total revenue $400 Costs Apples $30 Utilities $20 Lease $23 Abner's normal...

Q:

These Q about Healthcare Economics True or False Questions 1. Hospitals are health care firms that earn revenues from selling some health care resources. 2. Physician clinics are health care firms...

Q:

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

Q:

A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials. The firm's factory sits on land owned by the firm that could be rented out...

Q:

1. According to the text, economists assume that business firms transform inputs into useful goods and services so as to _____. a. create a reputation of social service b. earn profits and avoid...

Q:

Please Help me with these questions 1. A firm that earns zero accounting profit is earning a normal profit. a. True b. False 2. If the owners of a firm earn accounting profit, it follows that a. They...

Q:

1. Explicit and implicit costs Juan and Julia contributed $ 50,000 of their own money to the company They bought equipment for $ 3,000 They hired an employee with a salary of $ 20,000 Juan quit his...

Q:

For what values of the test statistic do you reject H0? fail to reject H0?

Q:

Let X(1),..., X() denote the order statistics of an iid sample, X,.....X from a continuous population with edf Fx(x) and pdf fx(r). Then the pdf of X) is given by n! (j 1)!(n j)!Sx(x) [Fx (x)]~ [1...

Q:

Exercise 1 Find the domain, the first and second partial derivatives of the functions . ( 1 ) f ( x , y ) = x ( x + y ) 2 ( 2 ) f ( x , y ) = s i n ( x y ) x y ( 3 ) f ( x , y ) = l n ( y 2 - e x )

Q:

Explain how a fall in the price of corn (the main chicken feed) changes the marginal cost of producing wings and changes a farms economic profit. Whats the good news for restaurants?

Q:

For each of the transactions listed in Test Yourself Question 3, what will be the ultimate effect on the money supply if the required reserve ratio is one-eighth (12.5 percent)? Assume that the...

Q:

Why does a modern industrial economy need a central bank?

Q:

Explain why the quantity of bank reserves supplied normally is higher and the quantity of bank reserves demanded normally is lower at higher interest rates.

Q:

Assume these are the stock market and Treasury bill returns for a 5-year period: What was the risk premium on common stock in each year

Q:

What is the output of the following program when the method is called with 5? void unknown(int n) if (n>0) unknown(n-1); System.out.print("?"); a. ???? b. ????? c. ?????? d. None of the above

Q:

Part Quality Supplier Good Minor Defect Major Defect A 100 5 8 B 160 27 4 C 150 11Chi Square - Test of Independence ChiSquare - Test of Independence Question 20 (4 points) DATA contains Part Quality...