Implicit costs are defined by economists as nonmonetary opportunity costs. Why is it important for a...
Implicit costs are defined by economists as nonmonetary opportunity costs. Why is it important for a firm to take these costs into consideration when evaluating a potential activity, when they don’t involve any monetary expense?
Homework Answers
Implicit cost refers to the benefits sacrificed by selecting another alternative. Therefore, in order to know the real cost of a decision, we need to know the benefits foregone in order to select the alternative. Implicit costs help a firm know it's economic costs and profits which are of greater importance than accounting costs or profits.
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Implicit costs are defined by economists as nonmonetary
opportunity costs. Why is it important for a...
Opportunity costs are defined as ____. Costs of the capital projects that are under consideration by...
Opportunity costs are defined as ____. Costs of the capital projects that are under consideration by management The costs of a project or proposal that are foregone when another opportunity is chosen Cash outlays that have been incurred and cannot be recovered regardless of the decision The costs incurred when evaluating all potential capital projects
Which examples involve only implicit opportunity costs (not explicit costs)? Check all that apply: A firm...
Which examples involve only implicit opportunity costs (not explicit costs)? Check all that apply: A firm using cash to buy Treasury bills A real estate company using a rental apartment as its own office A company using a spare machine for a new project A firm withholding licensing rights from others to gain a competitive adv
1. Explicit costs ______. do not involve outlays of cash are greater than implicit costs involve...
1. Explicit costs ______. do not involve outlays of cash are greater than implicit costs involve outlays of cash are less than implicit costs 2. Opportunity costs can vary from person to person and ______________________. can be calculated easily most of the time can even be different for the same person at different points in time are always known and predictable represent explicit costs only 3. An example of an implicit cost would be ______. transportation expenses salaries rental costs...
economists normally assume that the goal of a typical business (firm) is to (x) sell as...
economists normally assume that the goal of a typical business (firm) is to (x) sell as much of their product as possible regardless of the level of profit. (y) set the price of their product as high as possible regardless of the level of profit. (z) maximize profit regardless of the price or quantity of sales. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (z) only Which...
5. A. Explain why explicit costs and implicit costs are relevant in economic decision B. You...
5. A. Explain why explicit costs and implicit costs are relevant in economic decision B. You have just been offered a job in a firm at Wall Street paying $60,000 per making. year. You decide to turn down this offer because you want to work for yourself. Explain the opportunity cost of working for yourself? C. Analyze why the marginal cost is the relevant cost to the producer when he is deciding whether to produce more of a good.
Microeconomics Chapter 9. Name Emili 1. Economic cost can best be defined as any contractual obligation...
Microeconomics Chapter 9. Name Emili 1. Economic cost can best be defined as any contractual obligation that results in a flow of money expenditures resource suppliers. B. those payments for resources that involve an obvious cash transaction. C. the income the firm must provide to resource suppliers to attract ri uses. D. the opportunity cost of using a resource already owned by the firm. 2. Which of the following is most likely to be an implicit cost for C (A)....
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....
Starts Feb 8, 2020 11:59 PM Opportunity costs are the potential benefits a person or company...
Starts Feb 8, 2020 11:59 PM Opportunity costs are the potential benefits a person or company forgoes when choosing one alternative over others. Both business decisions and personal decisions can have opportunity costs. While opportunity costs are measured in terms of monetary impact for cost accounting purposes, in reality, most important decisions have both quantitative and qualitative components.
When analyzing a firm’s behavior, it is important to include all the opportunity costs of production”...
When analyzing a firm’s behavior, it is important to include all the opportunity costs of production” Discuss this statement by providing examples for ALL costs. What does this imply for the type of profit the firm will adopt?
Opportunity costs is defined as the contribution to operating income that is forgone by not using...
Opportunity costs is defined as the contribution to operating income that is forgone by not using a limited resource in its next-best alternative use the cost of manufacturing a one-time-only special order when a firm has excess capacity to make more products the sum of variable and fixed costs in all business functions of the value chain, such as manufacturing costs or marketing costs the sum of variable and fixed costs in a particular business function of the value chain,...
5. A. Explain why explicit costs and implicit costs are relevant in economic decision B. You have just been offered a job in a firm at Wall Street paying $60,000 per making. year. You decide to turn down this offer because you want to work for yourself. Explain the opportunity cost of working for yourself? C. Analyze why the marginal cost is the relevant cost to the producer when he is deciding whether to produce more of a good.
Microeconomics Chapter 9. Name Emili 1. Economic cost can best be defined as any contractual obligation that results in a flow of money expenditures resource suppliers. B. those payments for resources that involve an obvious cash transaction. C. the income the firm must provide to resource suppliers to attract ri uses. D. the opportunity cost of using a resource already owned by the firm. 2. Which of the following is most likely to be an implicit cost for C (A)....
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....
Starts Feb 8, 2020 11:59 PM Opportunity costs are the potential benefits a person or company forgoes when choosing one alternative over others. Both business decisions and personal decisions can have opportunity costs. While opportunity costs are measured in terms of monetary impact for cost accounting purposes, in reality, most important decisions have both quantitative and qualitative components.
Opportunity costs is defined as the contribution to operating income that is forgone by not using a limited resource in its next-best alternative use the cost of manufacturing a one-time-only special order when a firm has excess capacity to make more products the sum of variable and fixed costs in all business functions of the value chain, such as manufacturing costs or marketing costs the sum of variable and fixed costs in a particular business function of the value chain,...
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