Essay Questions:

1. Explain the difference between explicit and implicit costs.

2. Discuss the importance of marginal analysis in economic decision making.

3. Describe the concept of opportunity cost, and provide an example of how it can impact decision making.

4. Explain the difference between accounting profit and economic profit, and discuss why economic profit is considered to be a more accurate measure of profitability.

5. Discuss the concept of diminishing marginal returns and provide an example of how it can occur in production processes.