Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Question

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Answer 1

Question

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

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Answer 2

Question

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

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Answer 3

Question

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

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Answer 4

Question

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

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Answer 5

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

Answer 6

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

Answer 7

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Answer 8

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.