Question: ECO/516 1.) Why do economic costs include both explicit (revealed and expressed) costs and implicit (present but not obvious) costs? 2.) If a firm's current

ECO/516

1.) Why do economic costs include both explicit (revealed and expressed) costs and implicit (present but not obvious) costs?

2.) If a firm's current revenues are less than its current variable costs, when should it shut down? If the firm decides to shut down, should we expect that decision to be final? Explain using an example.

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