Explicit and implicit cost with example.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Average total cost tells us the O 1) cost of the last unit of output, if total cost does not include a fixed cost component. 2) variable cost of a firm that is producing at least one unit of output. 3) O 4) total cost of the first unit of output, if total cost is divided evenly over all th units produced. cost of a typical unit of output, if total cost is divided evenly over all the uni produced.

. What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From ___ to ____g. Over what range of the variable input usage do decreasing marginal returns exist?From ___ to ___h. Over what range of input usage do negative marginal returns exist?From ___ to ___ . What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From to g. Over what range of the…

Subscribing to the theory that life is indeed a beach, the residents of La Playa spend all of their money on three things: Every year, they collectively buy 250 bathing suits, 600 tubes of sunscreen, and 400 beach towels. Using the data in Table 8P - 1 , calculate the following . [LO 8.1] a. The total cost of this basket each year 2013 through . b. How much the price of this basket has changed from year to year in percentage terms. three

Answer 2

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 6

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 7

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Answer 8

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 12

Ch. 9.2 - Prob. 1QQ Ch. 9.2 - Prob. 2QQ Ch. 9.2 - Prob. 3QQ Ch. 9.2 - Prob. 4QQ Ch. 9.5 - Prob. 1QQ Ch. 9.5 - Prob. 2QQ Ch. 9.5 - Prob. 3QQ Ch. 9.5 - Prob. 4QQ Ch. 9.8 - Prob. 1QQ Ch. 9.8 - Prob. 2QQ

Explicit and implicit cost with example.

Concept explainers

Explicit and implicit cost with example.

Explanation of Solution

Want to see more full solutions like this?

Chapter 9 Solutions