Microeconomic Chapter Eight Distinguish between a firm's explicit costs and its implicit costs and between a firm's accounting profit and its economic profit.
Q: 1.Would you consider an interest payment on a loan to a firm an explicit or implicit cost?
A: Implicit cost: It can not de directly conveyed in monetary terms. For example, cost related to…
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: Danielle decides to withdraw her savings of $70,000 and invest in starting her own clothing…
A: Accounting profit is a company's net income, which is revenue minus expenses. Economic profit is…
Q: In the graph below, you can see the iso-cost curve and the iso-quant curve for the firm to produce q…
A: the iso-cost curve is his budget line. An iso-cost line is a graph that depicts numerous input…
Q: A producer borrows money and starts a business. He himself looks after the business. Identify…
A: (Q) A producer borrows money and starts a business. He himself looks after the business. Identify…
Q: Description Given the following graph, please label the curves where asked and answer the…
A: Here ,we have to find profit - maximizing level of output.
Q: Explain some of the different factors that would affect a firm’s profitability and what might make a…
A: The profit/loss of a firm is the amount of net benefit from to the business from participating in…
Q: How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller…
A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…
Q: Suppose you run a small business in your building and you act also as a manager of your business. If…
A: In order to answer this question we need to understand the concept of explicit cost and implicit…
Q: Looking at family business, integrate the knowledge you learn to analyze TWO challenges that the…
A: We are supposed to do the 1 question at a time please send the other question for answers.…
Q: Graph the ATC and MC below and explain
A: The marginal cost (MC) represents the additional costs incurred in producing one extra unit of the…
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: QUESTION 1 Match each of the following terms and descriptions Accounting Profit A. total revenue…
A: 1. Accounting Profit: It is the difference between revenue and cost. The cost includes only explicit…
Q: A firm is defined as a a president, some vice presidents, and some employees. b. any organization…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Use your own example to clearly differentiate between an "accounting profit" and an "economic…
A: When talking about the difference between economic and accounting profit, it can be said that…
Q: Consider the concepts of accounting profit and economic profit. Suppose you are a consultant and…
A: Profit is the surplus value that is generated in a process of production, which usually accrues to…
Q: Problem 1:William is the owner of a small pizza shop and is thinking of increasing products and…
A: 1. The company uses two types of resources in order to produce something. These resources are fixed…
Q: Problem 1:William is the owner of a small pizza shop and is thinking of increasing products and…
A: Since there are multiple sub parts in this question, only the first three sub parts will be answered…
Q: True or False? Briefly discuss. a. If a firm makes zero economic profit, the firm earns revenue that…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: In a market that allows free entry and exit, when does the process of entry and exit end for the…
A: New firms enter the market when existing firms are making a positive economic profit in the short…
Q: Klee Motors is a small car leadership. On average, it sells a car for $24 000, which it purchases…
A: It is given that the firm has a few fixed costs such as the rent which is equal to 60,000 per month,…
Q: INSTRUCTION: Give one example of a technopreneur, describe his/her business, and then explain what…
A: According to their areas of interest, different sorts of entrepreneurs operate their firms in…
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: Frank is an engineer who had decided to leave his job making $150,000 per year to brew and sell…
A: Economics is the branch of knowledge in which we study scarce resources and unlimited wants. The…
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: When compared to a large business, a small business has O roles that are shared across a larger…
A: An organization or entity that is being engaged in activities of industrial, commercial, or…
Q: fewer models within each brand A. What research would you have done to determine which vehicle…
A: Restructuring is the act of reorganization of the various structures of a company including legal,…
Q: A) What should a firm do if it realizes that its marginal revenue is more than its marginal cost? b)…
A: The marginal revenue refers to the additional revenue earned on selling an additional unit of…
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: Help please. Can you give me at least 5 Short-term strategies, 5 Intermediate-term strategies, and 5…
A: IKEA company: IKEA is a Swedish global organization that was established in 1943 by 17-year-old…
Q: A firm is defined as a. a president, some vice presidents, and some employees. b. any organization…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Can a firm earn an economic loss and an accounting profit at the same time?
A: The measure that depicts distribution of income to owner in a profitable process of production in…
Q: Graph the Average Total Costs, Average Variable Costs, and Marginal Costs on the same graph.
A: Average total cost is total cost divided by quantity. ATC = TC / Q ------------------- Average…
Q: Define and explain the differences between accounting profit and economic profit
A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…
Q: 1.) If firms are rational, why is it they could underproduce or overproduce? 2.) What is the demand…
A: (Since you have posted a question with multiple sub parts, we will solve the first three sub parts…
Q: 8. Which of the following are short-run decisions and which are long-run decisions? a. General…
A: Short run refers to the time period which does not allow changes in the capital to adjust with the…
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: How is it possible to have positive accounting profit and negative economic profit concurrently?
A: Answer: Let us first understand the difference between accounting profit and economic profit.…
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: Suppose that a firm produces 475,000 units a year and sells them all for $20 each. The explicit…
A: All the firms try to maximize their profits. There are two types of profits- accounting profits and…
Chapter Eight
Distinguish between a firm's explicit costs and its implicit costs and between a firm's accounting profit and its economic profit.
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by Bartleby Expert- What are explicit and implicit costs?definition of economic costsTimes New Rom 12 A A Aa A == -=- E E T AaBbCcDc AaBbC AaBbCcC AaB AaBbCcD Аав O Find Replace BIU ab x, x A A- 目三==|m。 T Normal Heading 1 Heading 2 Title Subtitle Select Font Paragraph Styles Editing 1. 2. 4. 9. True or False 1.→Profit can-be calculated without including fixed costs. 2.→All costs can be categorized as either fixed or variable costs.T 3.→Total revenue accounts for all costs. 4.→One time-legal fees that move as services are rendered are considered variable costs. 5.→An-application fee and a fixed cost are basically the same. 6.→AVC+ AFC=TC. 7.→Short run costs are more associated with fixed costs rather than variable costs 8.→All average costs can be calculated by deriving the perunit costs 182 words MI DFocusBO e to search
- Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year. He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year. Downloads generated $130,000 in revenue during the first year. What is his accounting profit? Selected Answer: b. $37,000 Answers: a. $50,000 b. $37,000 c. $130,000 d. $43,000 e. $93,000Chris The use of fixed cost items to magnify the firm's results Correct! What are some uses for break-even analysis? Select all that apply, then click Submit below To see how much the changes in cost affect variable costs. To see how much the changes in volume affect cost and profit. To determine the magnitude of operations necessary to avoid loss. To figure out the most efficient level of fixed costs for the firm. To figure out the most inefficient way to make profit. To figure out the operating leverage. Submitx Homework (Ch X ng.cengage.com/static/nb/ui/evo/index.html?deploymentid=58830011095382489666091140&eISBN=97813... A McAfee A Linear equations cal... Sy Matrix Calculator watch Lenovo Support L Lenovo CENGAGE | MINDTAP Homework (Ch 07) Felix's only variable cost. Felix has a fixed cost of $80 per day and pays each of his workers $120 per day. Felix's total output schedule and total cost at each level of labor are presented in the following table. Labor Input (Number of Workers) 1 Fill in the blanks to complete the Marginal Product column for each worker and the Marginal Cost column at each level of labor. (Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can calculate it here by dividing the increase in total cost from hiring one more worker by the marginal product from hiring one more worker.) NMT 5 2 3 + # 3 MindTap - Ceng X F3 E F4 Ş 4 When hiring the first and second workers, Felix's Burrito Stand faces Total Output (Burritos per…
- Indicate whether each of the following is anexplicit cost or an implicit cost.a. A manager’s salaryb. Payments to Dell for computersc. A salary forgone by the owner of a firm byoperating his or her own companyd. Interest forgone on a loan an owner makes tohis or her own companye. Medical insurance payments a companymakes for its employeesf. Income forgone while going to colleGraph the ATC and MC below and explain output ATC MC 0 - 10 10 18 2 20 10 1 30 7 0.5 40 5.375 1.5 50 4.6 2 60 4.166667 2.5 70 3.928571 3.3 80 3.85 3.2 90 3.777778 5 100 3.9 9 110 4.363636 10 120 4.833333The way in which accountants and economists analyse the costs of a firm differ. Discuss the difference between accounting costs and economic costs of a firm.
- 2) You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost schedule: Total Cost $300 301 Quantity Average 600 players 601 Your current level of production is 600 devices, all of which have been sold. Someone calls, desperate to buy one of your music players. The caller offers you $550 for it. Should you accept the offer? Why or why not?Explain why understanding the cost curves and various types of costs is important for businesses making decisions.F a) Draw the demand process cycle and label it fully. b) A door company has the following materials in inventory. Inspect the table below and answer the following questions Material Average (in Kilograms) Price Aluminum 3884 $3.0 Steel 5850 $1.4 Iron 200 $1 Work in Progress Average Price Fence 78 230 Final Products Average Price Door 300 300 Window 550 240 i. Calculate the number of turns. ii. Calculate the cost per day.
