Answered: If accounting profit is $400,000…

Business

Economics

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Marginal cost is the slope of both the average variable cost and the variable cost functions. Select…

A: Marginal cost is the change in total cost or total variable cost per unit change in output.

Q: What is Explicit Cost?

A: The cost of production is the cost incurred in the process of production in the economy by a firm.…

Q: Kevin quits his computer programming job, where he was earning a salary of $60,000 per year, to…

A: Given the give up salary = $60000 Rent = $24000 Salary paid to himself = $40000 Rent = 0 Other…

Q: How do fixed costs change over the long-term? Do costs get re-categorized into a variable cost when…

A: Fixed costs are the costs that do not change with the change in quantity while variable costs are…

Q: An entrepreneur invests $10,000 of her personal savings in her new business venture. Furthermore,…

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

Q: What effect, if any, does diminishing marginal product have on the shape of the marginal cost curve?

A: According to the law of diminishing marginal returns, after a certain level adding additional units…

Q: When marginal cost exceeds average total cost, which of the following must be true? Question 14…

A: Costs are the expenses that a firm incurs in the form of the purchase of inputs to produce goods and…

Q: What is optimization? How does it blow up the myth about profit being a result of a mere…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: What is the wholesale cost of an item, if the retail cost is $37 and the amount of markup is $7? Use…

A: Retail is the sale of goods to final consumers and the units sold is individual unit of good.…

Q: What is the difference between sunk cost and fixed cost? Explain with examples.

A: Sunk costs and fixed costs are two kinds of expenses borne by a corporation in the different…

Q: In The Cost Graph for a typical firm, as quantity increases, what is the relationship between…

A: The visual depiction of the relationship between the cost of production and the quantity of goods or…

Q: Assume that the required reserve ratio is 25%. If the Fed buys $5 million worth of government…

A: Given information, Required reserve ratio: 25% Purchase of bonds by Fed: $5 million To find:…

Q: If a cost function is C(q) = 2q3 - 6q2 + 20q • what is the fixed cost? What is the variable cost? •…

A: Economies of scale refers that when the cost per additional unit is decreasing due to increasing in…

Q: Copy the table below into your answer booklet and fill in the missing figures: output total cost…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: in part b, how do we know that is the cost function? where are those variables coming from?

A: In part B of the question, you are asked to find expressions for the cost-minimizing levels of labor…

Q: What are economies and diseconomies of scale? How do they arise? What do they imply for the shape of…

A: Long run average cost is the lower cost for the production of every unit. It comprises several short…

Q: what is explicit cost with example

A: The correct answer is given in the second step .

Q: What is the difference between implicit and explicit costs? Why do economists include both implicit…

A: Each firm in any industry is driven by profit motive. The goal of a firm is to maximize its sales…

Q: The cost curve for producing widgets passes through the following points and is piecewise linear in…

A: Given Information: Units produced Costs 0 $600 200 $1200 400 $1600 600 $1800 The fixed…

Q: What is a sunk cost? Provide an example of a sunk cost other than one from this book. Why are such…

A: Cost refers to the expenses that the firm incurs in the production process of its goods and…

Q: If c=3q-3q2+q3is a cost function, when is marginal cost decreasing?

Q: Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and…

A: Implicit Cost: Implicit cost is due to the factors which are entrepreneur himself owns and employs…

Q: Austin's total fixed cost (TFC) is $350/month at his cupcake bakery. Austin employs 10 workers and…

A: The amount of output produced determines the fluctuation in variable costs. Labor costs are one type…

Q: Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.…

A: Based on the provided information and the cost functions, I have filled out the missing data in the…

Q: Ifmarginal cost is below average total cost, average total cost will

A: During the production of the communities the overall cost incurred is referred to be as a total cost…

Q: what is the fixed cost, marginal cost, average total cost, average variable cost and average fixed…

A: Total cost is the sum of fixed cost and variable cost.Fixed cost is the cost that doesn't changes…

Q: Suppose that average total cost is $60, average fixed cost is $25, marginal cost is $45, and output…

A: Given, ATC = $60 AFC = $25 MC = $45 Output = 300.

Q: fall in the long-run cost curve

A: A cost curve which represents the minimum cost at which output can be produced in the long run is…

Question

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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Use your knowledge of cost functions to calculate the missed cost data in the accompanying table. Round your answers to two digits after the decimal. Quantity Marginal cost Fixed cost Variable cost Total cost Average fixed cost Average variable cost Average total cost 0 --- --- --- --- 1 $40.00 2 $72 3 $85.00 4 $30.00 $360.00 What is the total cost when producing zero units? total cost: What is the marginal cost for the first unit? marginal cost: What is the average total cost when producing three units? average total cost: What is the average variable cost when producing four units? average variable cost:
What is the difference between economic profit and accounting profit? What is a normal rate of return and how does normal, less than normal, greater than normal inform resource allocation?
Why is the short run marginal cost curve U- Shaped?
"Money cost and the real cost don't coincide"? Comment on this statement
Find total cost if average cost is $11 and output is $20
What cost would an accounting statement reveal should current decisions be based on accounting cost.
“Sunk cost is a fixed cost, but not in the long term.” Is this statement true or false? Explain!
Find total cost if output is 39 units and average cost is $22
Joe quits his computer programming job, where he was earning a salary of $70,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $20,000 per year. In his first year of business he has the following expenses: salary paid to himself, $45,000; rent, $0; and other expenses, $40,000. Find the accounting cost and the economic cost associated with Joe's computer software business. (Enter numeric responses using an integer.) The accounting cost of Joe's business is $ (Enter your response as an integer.) es Get more help Clear all Check answer
is it true that the marginal cost curve intersects the average variable cost curve at the break-even point?
What is the term for the change in total cost resulting from a one-unit increase in production? average fixed cost opportunity cost average variable cost marginal cost
When thinking about cost analysis in Microeconomics, what are the real-world problems that occur when applying theories of scale? Describe and give an example of each.