A firm earns normal profit Selected Answer: c. when explicit costs equal implicit costs. Answers: a. when accounting profit equals explicit costs. b. when economic profit equals implicit costs. c. when explicit costs equal implicit costs. d. when economic profit equals explicit costs. e. when accounting profit is less than implicit costs.

A firm earns normal profit Selected Answer: c. when explicit costs equal implicit costs. Answers: a. when accounting profit equals explicit costs. b. when economic profit equals implicit costs. c. when explicit costs equal implicit costs. d. when economic profit equals explicit costs. e. when accounting profit is less than implicit costs.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.5IP

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True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered bycurrent decisions.2. It is possible for the economic profit and accounting profit to be equal to one another.3. If Ed<1, an increase in price leads to higher revenue.4. In the long run, at least some of the inputs should be variable.5. Production is a transformation of resources in to goods and services.
a. Why will firms in most markets be located at or close to the bottom of the longrun average cost curve? b. Distinguish between implicit and explicit costs. How is it possible to havepositive accounting profit and negative economic profit concurrently? c. Distinguish between economies of scale and constant returns to scale. What shape will the long-run average cost curve have for economies of scale andconstant returns to scale. d. What is the difference between production in the short run and production in the long run? Explain the shape of the long-run cost curve in relation to shortrun cost curves?
Accounting profit is total revenue less by Select one: a) Implicit costs only b) Implicit and Explicit costs c) None of the answers are correct d) Oppurtunity Costs e) Explicit cost only
(a) Explain Implicit and Explicit cost with the help of suitable example?(b) Some producers do not stop their production when they face loss in their production. Why? (c) What is the importance of stages of production?
Q)Distinguish between explicit and implicit costs, giving examples of each. (a) What are the explicit and implicit costs, say for example for joining university study? (b) Why does the economist classify normal profits as a cost? (c) Are economic profits a cost of production?
A firm is producing 20 units with an averagetotal cost of $25 and a marginal cost of $15. Ifit increases production to 21 units, which of thefollowing must occur?a. Marginal cost will decrease.b. Marginal cost will increase.c. Average total cost will decrease.d. Average total cost will increase.
Marginal analysis (a.k.a. thinking at the margin) Multiple selects assumes dimishing marginal returns does not allow for hypothetical questions considers unit changes implies that MR=MC allows for negative marginal returns
37- If firm X produces 20 units of product with a total cost of 100, what is its average cost? a) 2nd B) one NS) 120 D) 5 TO) 80
True/False Marginal cost is the addition to the total cost when more unit of output is being produced.
(a) How would one estimate the full cost to an airline if one of its planes is held over for 24 hours in an airport for repair? (b) A company has spent $10 million to develop a product for market. During the product’s first two years, the company’s profit was $6 million. In recent years, the market was flooded by rival products and now the company is reassessing its product. If it abandons the product, it can recover $2 million of its original investment by selling its production facility. If it continues to produce the product, its estimated revenues for successive two-year periods will be $5 million and $3 million and its costs will be $4 million and $2.5 million. (After four years the plant will have zero resale value.) What would be the company’s best course of action? (c) Two decades ago, the global demand and supply curves for copper were: Qd = 15-10P and Qs = -3 + 14P, where Q is measured in millions of metric tons per year. Find the competitive price and quantity. Suppose that…
Consider the following cost information for a pizzeria:Quantity Total Cost Variable Cost0 dozen pizzas $300 $0I 350 502 390 903 420 1204 450 1505 490 1906 540 240a. What is the pizzeria's fixed cost?b. Construct a table in which you calculatethe marginal cost per dozen pizzas using theinformation on total cost. Also, calculate themarginal cost per dozen pizzas using the inforpmation on variable cost. What is the relationshipbetween these sets of numbers? Explain.
Help plz Ari's explicit costs are…. Ari's implicit costs are … Ari's economic profit in the first year is …..dollars. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign.