1.
The Accounting cost of a good includes the [ Select ] ["monetary value", "implicit costs", "Explicit cost", "total costs"]
The economic cost of a good includes the [ Select ] ["nothing else", "Implicit costs", "nothing", "total costs", "total cost", "Explicit costs", "value", "total value"](as above) plus the[ Select ] ["implicit value", "total costs", "nothing else", "Implicit costs"].
2.
The realization of economic profits or economic losses sends a strong signal to the firm regarding its production decisions. When the firm finds that it is earning economic profits through its business activities, this suggests that the firm is increasing the value of resources, as consumers are willing to pay a price above the economic cost of production. Economic profits provide the firm with an incentive to continue to enhance the value of resources through production. On the other hand, economic losses suggest that a firm is decreasing the value of resources through the production process and ought to[ Select ] ["reduce consumption", "shut down", "increase efficiency", "increase production"] or increase efficiency.
3.
Homework Answers
a) Accounting cost includes all the explicit cost of production.
b) Economic cost includes implicit costs, plus the total cost.
c) The firm making a loss in the market need to shut down or increase efficiency in the market.
d) "C"
These firm in the market earn high economic rent due to barriers to entry.
Add Answer to:
1.
The Accounting cost of a good includes the [ Select ]
["monetary value", "implicit costs",...
PLEASE ANSWER BOTH QUESTIONS 5) Suppose that a business incurred implicit costs of $200,000 and explicit...
PLEASE ANSWER BOTH
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5) Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $400 per unit, its accounting profits were a) S100,000 and its economic profits were zero. b) S600,000 and its economic profits were $400,000. c) S100,000 and its economic profits were $100,000. d) zero and its economic loss was $200,000. Suppose that a business incurred implicit costs...
Please help with these questions, Question 21 0.16 pts One difference between implicit costs and explicit...
Please help with these questions,
Question 21 0.16 pts One difference between implicit costs and explicit costs is that implicit costs are included in economic profits, whereas explicit costs are not. explicit costs are included in economic profits, whereas implicit costs are not. O implicit costs are included in accounting profits, whereas explicit costs are not. explicit costs involve opportunity costs, whereas implicit costs involve a monetary transaction. explicit costs are included in accounting profits, whereas implicit costs are not....
Suppose that a business had implicit costs of $500 000 and had explicit costs of $5...
Suppose that a business had implicit costs of $500 000 and had explicit costs of $5 million in a specific year. If in that year the firm sold 100 000 units of its output at $50 per unit, its accounting: O profits were $100 000 and economic profits were zero losses were $500 000 and its economic losses were zero O profits were $500 000 and its economic profits were $1 million O profits were zero and its economic profits...
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QUESTION 4 Assuming each unit of variable inputs cost the same, marginal cost will increase as output increases if O Variable cost is rising. Total cost is rising Marginal physical product is rising. Marginal physical product is falling QUESTION 5 In the short run, when a firm produces zero output, total cost equals: O fixed costs. variable costs O zero. O average total cost. QUESTIO Economic cost includes: O Only the value of resources used to produce a good for...
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QUESTION 23 When a good or service is a luxury, its price elasticity of demand tends to be Elastic Inelastic Unit Elastic Unknown QUESTION 24 A decrease in the price of a product that a firm sells will cause the demand for it to increase. True False QUESTION 25 Economic profits are equal to total revenues minus Only implicit costs Only explicit costs Implicit and explicit costs Marginal cost QUESTION 26
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PLEASE ANSWER BOTH
QUESTIONS
5) Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $400 per unit, its accounting profits were a) S100,000 and its economic profits were zero. b) S600,000 and its economic profits were $400,000. c) S100,000 and its economic profits were $100,000. d) zero and its economic loss was $200,000. Suppose that a business incurred implicit costs...
Please help with these questions,
Question 21 0.16 pts One difference between implicit costs and explicit costs is that implicit costs are included in economic profits, whereas explicit costs are not. explicit costs are included in economic profits, whereas implicit costs are not. O implicit costs are included in accounting profits, whereas explicit costs are not. explicit costs involve opportunity costs, whereas implicit costs involve a monetary transaction. explicit costs are included in accounting profits, whereas implicit costs are not....
Suppose that a business had implicit costs of $500 000 and had explicit costs of $5 million in a specific year. If in that year the firm sold 100 000 units of its output at $50 per unit, its accounting: O profits were $100 000 and economic profits were zero losses were $500 000 and its economic losses were zero O profits were $500 000 and its economic profits were $1 million O profits were zero and its economic profits...
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