An individual is both the owner and the manager of a shop taken on rent. Identify implicit cost and explicit cost from this information. Explain

Q: Exhibit 7-6 Output Rent Cost of Materials Labor $200 10 200 100 200 250 100 20 200 200 30 200 300 40…

A: Fixed costs are those costs that a company has to incur irrespective of any business activity like…

Q: Which of the following costs will not change as output changes? 1. A marginal cost 2. B. total…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Answer the following with the required graph. a) Describe the shape of the average fixed cost. b)…

A: The money spent to purchase the fixed and variable factor of production to produce the goods and…

Q: Please provide an example of sunk costs in bakery business and explain why they are sunk costs.

A: Money that is already spent, and cannot be recovered, is called sunk cost. There is popular saying…

Q: Specific subject: Microeconomics - Production and Costs Function  Comment on the following…

A: The cost that the firm incurs to produce one additional unit of the output is known as the marginal…

Q: Consider the table below that describes the costs associated with producing a good (Q). Total…

A: Marginal cost refers to the additional cost of producing one more unit of output.

Q: Explain how input, output and cost are interrelated

A: A business needs to make use of inputs for turning them into outputs that could finally be sold in…

Q: The''Sad Student'' Company finds that it costs a total of (q)=9720+500q-1.5q^(2)+0.005q^(3)…

A: The total cost function (q)=9720+500q-1.5q^(2)+0.005q^(3)  answer d  The constant term in the…

Q: The opportunity cost of money that a firm’s owner has invested is an example of  A Implicit costs. B…

A: Opportunity cost is by implicit costs. That is, implicit cost is the opportunity cost that arises…

Q: suppose Jack produces chocolate with two inputs : factory and labor.  If the workers become more…

A: Labor productivity has increased. Labor productivity and cost of production (except fixed cost) are…

Q: Write a short note on Law of diminishing returns – implications for the short-run cost curve

A: Law of diminishing return to scale implies that as the number of a variable input is raised keeping…

Q: What is the difference between the explicit and implicit cost

A: Cost In popular use, cost refers to the monetary worth of products and services purchased by…

Q: Assume that the marginal cost of production is increasing. Can you determine whether the average…

A: AVC is the cost which is measured by dividing average cost by the quantity of output produced.  MC…

Q: What is the difference between production in the short run and production in the long run? Explain…

A: The short-run is a notion that states that at least one input is fixed while the others are variable…

Q: Explain the difference between explicit and implicit costs, and giveexamples of each.

A: Cost refers to the expenses that firms have to incur in the production of their goods and services.…

Q: . The marginal cost curve intersects the average fixed, average variable, and average total cost…

A: Answer to the question is as follows:

Q: what is explicit cost with example

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

Q: In the theory of the firm, economist consider the total cost to be a function of the output level Q:…

A: Answer - According to the mathematical defination of the funtion is that fucntion is a relation…

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: Fixed costs can be defined as costs that

A: A fixed cost(FC) is the cost that does not change with the decrease or increase in the number of…

Q: Use the cost table below to find the following marginal costs. Output quantity Total Variable Cost…

A: The cost structure of a firm determines its productivity. The total cost of a firm comprises of…

Q: fisherman has a fixed cost of Rs.10 (his rod). The variable cost of his time is Rs.5 per hour. Graph…

A: total cost = total fixed cost + total variable cost

Q: 2. Trapper Joe, the fur trader, has found that his production function in acquiring pelts is given…

A: Given: q = 2H0.5 H= q2/4 Now, it is given that per hour a worker earns $8. Therefore, Total cost…

Q: Is it true or not that the marginal cost  C′(x) is equal to the average cost at the critical points…

A: Average cost is the cost of making a single product calculated by dividing the Total cost by the…

Q: A producer borrows money and starts a business. He himself looks after the business. Identify…

A: (1.) A producer borrows money and starts a business. He himself looks after the business. Identify…

Q: “Sunk cost is a fixed cost, but not in the long term.” Is this statement true or false? Explain!

A: In an economy, the cost is classified in different forms according to its effect on organizational…

Q: explicit or implicit cost

A: The expenditure incurred on producing a good or service depicts the cost. Cost depends the level of…

Q: What is the impact of a fall in productivity on costs. Explain further.

A: The primary aim of the business is to maximize the profit and reduce the cost. The efficiency of the…

Q: Is it true that in a short-run production process, the marginal cost curve eventually slopes upward…

A: No, It's not valid because the MC curve is usually upward-sloping, and there exists a decrease in…

Q: you calculate the marginal cost per dozen pizzas using the information on total cost. Also,…

A: The below formula can be used to find the marginal cost. Marginal Cost = Change in total costChange…

Q: Use the table below to answer the following question. Units Total Fixed Cost Total Variable of…

A: Marginal cost eventually we can say that it is the actual change in the value of the total cost…

Q: Suppose Marcus produces chocolate with two inputs: factory and labor. If the workers become more…

A: If the workers become more productive due to the training provided to them, the output would also…

Q: Explain how a firm is able to deal with both fixed and variable costs at the same time

A: Fixed cost is the cost of production which does not change or constant whatever the amount of good…

Q: Give few examples of "Sunk Cost" from your real-life experience.

A: Money that was already spent that cannot be recovered is referred to as a sunk cost. The axiom that…

Q: Would you consider an interest payment on a loan to a firm an explicit or implicit cost?

A: A producer faces two types of the cost when computing accounting profit and economic profit. These…

Q: Calculate a cost function from a production function and explain how economic costs differ from…

A: The economic cost is the money value of all resources in the business. It also implies the…

Q: Give an quantitative example of marginal and average cost.

A: Average cost is the equivalent of total fixed cost (TFC) and total variable costs (TVC) divided by…

Q: What is direct cost? What is indirect cost? Provide detailed definitions and  example for both

A: The total cost of a product is generally categorized into direct and indirect costs.

Q: Give two examples of explicit cost for a firm

A: COST: A loss is the amount of capital used to manufacture anything or provide a service and is…

Q: an interest payment on a loan to a firm is an explicit or implicit cost?

A: The implicit cost is an indirect cost defined as the opportunity cost of utilizing a firm's…