Distinguish between implicit and explicit costs and give examples of each. In addition, explain how explicit and implicit costs affect the distinction between economic profit and accounting profit. What explains the distinction between the two measures of profit?

Q: 1. Explain the difference between an implicit cost and an explicit cost, and how both costs relate…

A: 1.  Implicit cost is the cost that has already occurred in the past. However, these are not direct…

Q: Distinguish among accounting profit, economic profit, and normal profit. Does accounting profit or…

A: The difference between the revenue earned from the sale of a product and the total cost of…

Q: a. Why will firms in most markets be located at or close to the bottom of the longrun average cost…

A: A.  Why will firms in most markets be located at or close to the bottom of the long-run average cost…

Q: Explain the term Explicit and Implicit costs. Give examples

A: Implicit costs are costs that arise which are not registered for accounting purposes without…

Q: 1. You have not answered Suppose that the firm FashionL sells 100 vests per month for $80 per vest.…

A:

Q: Distinguish between implicit and explicit costs. How is it possible to have positive accounting…

A: Any cost that has already occurred but is not shown or reported as a distinct item is referred to as…

Q: Define Explicit and Implicit Costs.

A: Opportunity cost: - opportunity cost is a forgone benefit which we could have earned by applying all…

Q: Microeconomic Chapter Eight Distinguish between a firm's explicit costs and its implicit costs and…

A: Answer: Explicit cost: It is the payment made to outsiders for hiring factor services. It involves…

Q: Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a…

A: Total revenue is the total receipts collected from the sale of goods or service in the market.…

Q: Questions: 1. Isoquants can be convex, linear, or L-shaped. What does each of these shapes tell you…

A: Iso-quant: It shows the combination of the factors of an economy that produce the same level of…

Q: Economist describe short run decisions as constrained decisions while long run decision are…

A: In the short run, few costs are fixed and few are variable but in the long run their will be no…

Q: Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a…

A: Normal Profit is the profit that considers both the implicit as well as explicit costs. It is…

Q: When a company registers zero economic profits, it may be suffering losses from the accounting point…

A: Zero economic profits: A firm is in a normal profit condition when its economic profit equals zero,…

Q: A young chef is considering opening his own sushi bar. To do so, he would have to quit his current…

A: Implicit cost is the opportunity cost.

Q: True/False:  1. Implicit costs are those costs, which have been incurred in the past and cannot be…

A: Since, you have asked multiple question, we will be answering the first three for you. If you want…

Q: QUESTION 3 Explicit costs are and implicit costs are O Paid in money; incurred when a firm gives up…

A: In a market, firms bear two types of cost that are implicit cost and explicit cost. These cost are…

Q: Explain the difference between accounting and economic profit. Give two examples of when they…

A: Accounting profit means that profit which is earned after the explicit costs are deducted from…

Q: Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit…

A:

Q: 11.)(*) Ollah’s Organic Pet Shop sells about 4,000 bags of free- range dog biscuits every year. The…

A: We are going to use Economic Order Quantity and Total holding & operating cost concept to answer…

Q: What are some of the implicit cost incurred by an entrepreneur in running a firm? How are these…

A: The opportunity cost refers to the value of the next best alternative sacrificed when an individual…

Q: endy decides to open her own business and earns 70,000 in accounting profit the first year. When…

A: The measure that depicts expenses that are incurred by a business for carrying out its day-to-day…

Q: A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is…

A: Marginal Revenue Product(MRP) is the revenue(R) generated by an additional vehicle used for…

Q: “In the short run, a company has to operate as efficient as possible to accomplish the profit…

A: Please repost your question, as we are allowed to answer only 2 questions. a In achieving the short…

Q: 4. Why it is important to note that the economic measurement of production costs does not…

A: The markets are where the produced goods by the sellers of the market are sold, and the buyers…

Q: A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is…

A:

Q: Suppose that a business incurred implicit costs of $400,000 and explicit costs of $3 million in a…

A: Here we calculate the economic and accounting profit by using the given data and choose the correct…

Q: Accounting profits are: A.) economic profit less explicit costs. B.) less than economic…

A: "There are two kinds of costs explicit costs (are out of the pocket costs for a firm) and implicit…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: Economic profit means the deduction of total revenue from the total cost. It includes both implicit…

Q: The way in which accountants and economists analyse the costs of a firm differ. Discuss the…

A: Costs are the expenses being incurred for running a business. There are different types of costs…

Q: Anthony quit his job where he was earning an annual salary of $48,000 to open his own business.…

A: Explicit costs are the expenditures incurred by an individual or a business out of its own pockets.…

Q: List several Fixed and Variable costs, Explicit and Implicit costs associated with owning and…

A: Fixed costs are those costs that a firm has to incur even if it produces no output. Variable costs…

Q: Question #05 The short-run cost function of a company is given by the equation TC=200+55q, where TC…

A: Answers   TC=200+55q a) Fixed cost is that cost that is constant throughout all the quantities of…

Q: A firm's marginal product of labor is 20 and its marginal product of capital is 24. The wage rate is…

A: In long run both labour and capital are changeable factors and firms exhibit return to scale .…

Q: If accounting profit is $400,000 greater than economic profit, what do implicit cost equal?

A: We know that: Accounting profit = Total revenue- Total explicit cost Economic profit = Total revenue…

Q: Explain the difference between and the economic relevance of fixed costs, sunk costs, variable…

A: The cost of production includes the cost of the raw materials, cost of the factors of production as…

Q: explain what is meant by explicit; implicit; and sunk costs. How are they used to calculate…

A: All the costs that are linked or incurred to the business activities of a company and are easily…

Q: 2. A student foregoes her annual summer job (paying in total $3,200) in order to operate a sandwich…

A: Opportunity cost(OC) is the value of benefits that are sacrificed from the next best alternative as…

Q: Q)Distinguish between explicit and implicit costs, giving examples of each. (a) What are the…

A: In common usage, cost refers to the monetary value of goods and services purchased by producers and…

Q: 1.During a year of operation, a firm collects $5,000,000 (TR) in revenue and spends $3,500,000…

A: Given: Total Revenue = $5,000,000 Spends on labor expense, raw materials, rent, and utilities =…

Q: Tom runs a shoe-shine stand at the airport. Tom has no skills, no job experience, and no alternative…

A: Explicit cost is the direct out of pocket expense for a firm for example wages and salaries, rent,…

Q: The sole proprietor of the "Books and More" bookstore receives all accounting profits earned by her…

A: The firms and businesses operate in the market with the motive of earning high level of profits, and…

Q: Zubair purchases material by Rs. 20,000 per year and pays R. 10,000 for storage space. He recently…

A: The profit is a term that defines the net benefit to a firm from participating in the market. It is…

Q: difference between zero accounting profit and  zero economic profit is that.

A: Explicit cost are the paid out cost Or payments actually made in cash Implicit cost means…

Q: The difference between economic profit and accounting profit is?   Average cost Direct costs…

A: Cost is the expenditure incurred by firms on the production of goods and services. The cost can be…

Q: Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a…

A: Implicit costs = $200,000 Explicit costs = $10,00,000 Number of units = 4000 units Selling price =…