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…