Homework Answers
Answer :
Question 1 : Explicit costs
Explanation : Explicit costs are costs to a firm which goes out of pocket, while implicit costs are generally opportunity costs to a firm. So rent payment out here is automatically costs which goes out of pocket and thus is an explicit cost.
Question 2 :
Accounting profit = $(Total Revenue - Explicit Costs) = $700 - $50 = $650
Economic profit = $(Total Revenue - Explicit Costs - Implicit Costs) = $700 - $450 - $50 = $200
Question 3 : Option b) there are no more fixed resources
Explanation : An industry is said to be in the long run when all factors into production are variable and a manufacturer or producer can be flexible in their production decisions where they can freely vary all of the resources into production.
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Question 1: Determine whether the following expense is explicit or implicit A firm makes a rent...
1. The Accounting cost of a good includes the [ Select ] ["monetary value", "implicit costs",...
1.
The Accounting cost of a good includes the [ Select ]
["monetary value", "implicit costs", "Explicit cost", "total
costs"]
The economic cost of a good includes the [ Select ]
["nothing else", "Implicit costs", "nothing", "total costs", "total
cost", "Explicit costs", "value", "total value"](as above)
plus the[ Select ] ["implicit value", "total costs",
"nothing else", "Implicit costs"].
2.
The realization of economic profits or economic losses sends a
strong signal to the firm regarding its production decisions....
Please help with these questions, Question 21 0.16 pts One difference between implicit costs and explicit...
Please help with these questions,
Question 21 0.16 pts One difference between implicit costs and explicit costs is that implicit costs are included in economic profits, whereas explicit costs are not. explicit costs are included in economic profits, whereas implicit costs are not. O implicit costs are included in accounting profits, whereas explicit costs are not. explicit costs involve opportunity costs, whereas implicit costs involve a monetary transaction. explicit costs are included in accounting profits, whereas implicit costs are not....
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During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent, and utilities. The firm's owner has provided $750,000 of her own money form her personal portfolio instead of investing the money and earning a 10% annual rate of return. The firm also operates out of a building they own worth $1,000,000 which the owner inherited 25 years ago. The explicit costs of the firm are $______________. If the owner could...
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HANDOUT ABOUT PRODUCTION -CH Z Note: An explicit cost is a cost paid in money. An...
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1. Which of the following statements is false? a. Explicit costs of using market-supplied resources entail...
1. Which of the following statements is false? a. Explicit costs of using market-supplied resources entail an opportunity cost equal to the dollar cost of obtaining the resources in the market. b. When economic profit is zero, the firm’s owners could NOT have done better putting their resources in some other industry of comparable risk. c. If economic profit is positive, accounting profit must also be positive. d. If economic profit is negative, accounting profit must also be negative. e....
1. Zero economic profit means that The firm breaks down The firm makes just normal profits...
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Microeconomics Chapter 9. Name Emili 1. Economic cost can best be defined as any contractual obligation...
Microeconomics Chapter 9. Name Emili 1. Economic cost can best be defined as any contractual obligation that results in a flow of money expenditures resource suppliers. B. those payments for resources that involve an obvious cash transaction. C. the income the firm must provide to resource suppliers to attract ri uses. D. the opportunity cost of using a resource already owned by the firm. 2. Which of the following is most likely to be an implicit cost for C (A)....
1)An example of a perfectly competitive firm would be Dannon Yogurt a grain farmer a car...
1)An example of a perfectly competitive firm would be Dannon Yogurt a grain farmer a car manufacturer a drug company 2) In the long run the profit for a Perfectly competitive firm is theoretically ["zero", "small", "large", "negative"] because of ["competition", "lack of competition", "good cost controls", "poor cost controls"] 3)in the short run a P.C. industry will see ["entries and exits", "entry only", "losses", "only exits"] to/from the market based on ["positive profits to firms", "profits and losses to...
Question 11 Economic profit equals total revenue minus total costs including explicit fixed costs, explicit variable...
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1.
The Accounting cost of a good includes the [ Select ]
["monetary value", "implicit costs", "Explicit cost", "total
costs"]
The economic cost of a good includes the [ Select ]
["nothing else", "Implicit costs", "nothing", "total costs", "total
cost", "Explicit costs", "value", "total value"](as above)
plus the[ Select ] ["implicit value", "total costs",
"nothing else", "Implicit costs"].
2.
The realization of economic profits or economic losses sends a
strong signal to the firm regarding its production decisions....
Please help with these questions,
Question 21 0.16 pts One difference between implicit costs and explicit costs is that implicit costs are included in economic profits, whereas explicit costs are not. explicit costs are included in economic profits, whereas implicit costs are not. O implicit costs are included in accounting profits, whereas explicit costs are not. explicit costs involve opportunity costs, whereas implicit costs involve a monetary transaction. explicit costs are included in accounting profits, whereas implicit costs are not....
The firm type that involves sole decision maker power for the owner, unlimited liability for the owner. limited ability to raise money, and ends with the death of an owner is sole proprietorship m partnership. O corporation. all of the above. 0 none of the above. Question 2 4 pts The partnership firm type has a complex decision making process, but also has unlimited liability for the owners and is dissolved with the death of one of the owners. True...
HANDOUT ABOUT PRODUCTION -CH Z Note: An explicit cost is a cost paid in money. An implicit cost is an opportunity cost incurred by a firm when it uses a factor of production for which it does not make a direct money payment Normal profit is the return to entrepreneurship. The normal profit is part of a firm's opportunity cost because it is the cost of persuading the entrepreneur of not running another business. Chapter 7 Handout. Question 2: In...
Microeconomics Chapter 9. Name Emili 1. Economic cost can best be defined as any contractual obligation that results in a flow of money expenditures resource suppliers. B. those payments for resources that involve an obvious cash transaction. C. the income the firm must provide to resource suppliers to attract ri uses. D. the opportunity cost of using a resource already owned by the firm. 2. Which of the following is most likely to be an implicit cost for C (A)....
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