Explain what a sunk cost is, what an opportunity cost is, and how each cost should be handled when doing project analysis. Give an example of each type of cost. (Answer the question correctly and in-depth.)

Q: Factor-Factor Decision Making. Using the following information, answer the questions. y = 100 Px1 =…

A: Since we only answer up to 3 sub-parts, we will answer the first 3. Please resubmit the question and…

Q: Explain Implicit and Explicit cost with the help of suitable example?

A: Firms undertake production by employing many resources. There are hiring costs of inputs like labor…

Q: please analyze interaction of marginal cost and average cost numerically and derive the formula of…

A: C = 9720 + 500q - 1.5q2 + 0.005q3 Average cost (AC) = C/q = (9720 / q) + 500 - 1.5q + 0.005q2…

Q: regarded as costs by accountants but not by economists. B. payments that a firm makes to other firms…

A: Economic profit= total revenue- total cost

Q: If a person starts their own business, one implicit cost is the loss of a steady salary from leaving…

A: This statement is True Implicit cost is the opportunity cost of the foregone alternative which is…

Q: A product requires 14 hours to complete the first unit. Managerial experience has estimated the…

A:

Q: Which of the following is always downward-sloping? a. The marginal cost curve when it is below the…

A: The firms, producers, and sellers are considered to one of the major players in the markets. The…

Q: Explain what responsibilities of "cost control" are in a project associated with the making of a…

A: Step 1: Cost control: Cost control is the act of recognising and lessening operational expenses to…

Q: 2,000 1,000 2 10 15

A: Average cost(AC) is minimized when q=10. At q=2, TC curve is increasing at increasing rate. At this…

Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…

A: The opportunity cost refers to the value or cost of the next best alternative among all available…

Q: Lewis contracted with the government to dredge 2 million cubic yards of silt from a ship channel.…

A: Excavate: It refers to dig a hole in the ground.

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: Discuss the relationship that exists amongst the three short - run total cost curves. Motivate your…

A: The three short run cost curves are average cost curve ,marginal cost curve and average fixed cost…

Q: A fast food restaurant currently pays $5 per hour for servers and $50 per hour to rent ovens and…

A: Cost of production: These are the expenses faced by a firm for producing goods and services.

Q: State the relationship between average variable cost (AVC), and marginal cost (MC) when AVC is…

A: 1. AVC (Average variable cost) is decreasing, when the MC (Marginal cost) is less than AVC (Average…

Q: Over the positively sloped portion of the short-run average cost curve, the effect of productivity…

A: In the short-run , the average cost curve is the sum of total variable cost and total fixed cost.…

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

A: Fixed cost refers to the cost which does not change with change in the output level.

Q: QUESTION Sahar is analyzing the probability to open her own beauty salon. If she chooses to operate…

A: Answer - Given in the question - Rent = Rs 70,000 PM  salary of staff = RS 30,000 pm  Earning = RS…

Q: Which of the following is always downward-sloping?  a. The marginal cost curve when it is below the…

A: Marginal cost refers to change in total cost with respect to change in output. Average total cost…

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 economic profit equals accounting profit, what do implicitcosts equal?

A: Basics:- Economic Profit     = Revenue - Explicit Cost - Implicit Cost Accounting Profit  = Revenue…

Q: Which of the following is likely to be the least important factor for firms in determining…

A: Production is an activity that employs labor, capital, products, and services as inputs to generate…

Q: Marginal analysis (a.k.a. thinking at the margin) Multiple selects     assumes dimishing marginal…

A: Marginal analysis is the process of comparing additional benefits accrued to the additional costs…

Q: The following table states pre-Covid round-trip airfares (for a two-week trip in February,  booked…

A: Price discrimination refers to when the firm charges different prices to different customers for the…

Q: Using organization's existing under-utilized resources or capabilities (technologies, distribution…

A: The organization's existing under utilised resources  or capabilities result in the efficient…

Q: Implicit costs are Multiple Choice ) the same as economic costs. comprised entirely of actual…

A: When computing the cost associated with a specific task or event, an individual looks into two types…

Q: Suppose Alaska could add 1000 MWh of wind generation—which produces for four hours during the…

A: Solve with the help of graph marginal cost curve

Q: Why should sunk costs be ignored for decision making? Give an example of why it makes sense to…

A: Sunk cost are those cost which have been caused and the sum spent can not be recovered.since the…

Q: Which of the following would be a source of economies of scale? the quantity of labour more…

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output thus…

Q: • Create a table showing sample fixed and variable costs and output at different levels of factor…

A: Here is the table created with sample fixed and variable costs. The formula are also mentioned for…

Q: Which of the following sources of low costs is most popular? Group of answer choices   Economies of…

A: Cost is minimized when large output can be produced with limited resources and available technology.…

Q: Opportunity cost refers to A) explicit costs+ implicit costs B) Time costs C) Money costs D) None of…

A: The total amount of money used in producing goods & services and including labor, time and…

Q: A firm has access to two production processes with the following marginal cost curves: MC1 = 0.25x…

A:

Q: Which of the following statements regarding marginal analysis is​ true?     A. If total cost…

A: To sum up, marginal analysis is described as the cost of identifying the level of output at an…

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: At the profit maximizing level of input use, Which of the following are true? (i) MVP=0 (ii) MVP=MIC…

A: MVP (Marginal value product) is the additional revenue generated from hiring or employing an extra…

Q: A firm has access to two production processes with the following marginal cost curves: MC1 = 0.25x…

A: A firm minimizes costs when it distributes production across the two process so that marginal cost…

Q: Define returns to scale and its implications for production decisions.

A: Returns to scale refers to the percentage change in the output with respect to the percentage change…

Q: if economic profit equals accounting profit, what do implicit cost equal?

A: (Q) If economic profit equals accounting profit, what do implicit cost equal? There are two types of…

Q: If b=0, what would happen to the total-cost and marginal-cost curves of C=C(Q)=aQ^3+bQ^2+cQ+d?

A: We are going to analyse the cost curve behavior to answer this question.

Q: Explain why optimal marks- up vary

A: There are three facts about markup: 1).Markup is greater than or equal to zero—that is, the firm…

Q: A downward-sloping portion of a long-run average total cost curve is the result of

A: The term scale of production refers to the dimension of a firm. A small-sized firm defers lower…

Q: What do a firm's opportunity costs of production amount to?   Question 13 options:   explicit…

A: Opportunity Cost is the value of next best alternative sacrificed.

Q: Explicit cost = $100 Implicit cost = $163 Total cost = ?

A: Generally in the question, Explicit cost value is = $100 Implicit cost value = $163 We need to find…

Q: What is the term for what you give up to obtain an item?   Question 4 options:   opportunity cost…

A: Implicit Cost:- The expenditure which have already incurred which isn't shown or acknowledged as a…

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…

Q: Which of the following describes an implicit cost? NO opportunity cost is involved. NO outlay of…

A: Cost can be of two types, explicit cost and implicit cost.