Differentiate between explicit and implicit costs. Explain the importance of considering both types of costs to make an economic decision. Provide examples of at least 2 explicit costs and 2 implicit costs.

Q: A firm faces the following costs: total cost of capital = $4,000; price paid for labor = $20 per…

A: Given : Total fixed cost = $4000 Price paid for labour= $20 per unit  price paid for raw materials=…

Q: Suppose you have a job in production management. A portion of your costs are as in the table below:…

A: Here we calculate the profit and conclude the decision is this production profitable or not  , and…

Q: A product requires 14 hours to complete the first unit. Managerial experience has estimated the…

A:

Q: Rising short-run average variable costs of production for a firm indicate that   Question 4 options:…

A: Average variable costs are the costs incurred on variable factors or inputs per unit of output. The…

Q: Cost, Revenue & Profit For these problems, xx will represent the number of items and yy will…

A: Slope intercept form: Y=AX + B

Q: The first two units of a product cost a total of $9,000 to produce. If you believe an 80 percent…

A: Production cost = Original Cost * learning rate ^log 2 n.....(equation 1) The given learning rate is…

Q: Three departments-milling (M), drilling (UJ, three work areas in Victor Berardis's machine shop in…

A: Workpiece feet from M to D = 22 * 9 = 198Workpiece feet from M to S = 34 * 5 = 170Workpiece feet…

Q: Explain the difference between implicit and explicit costs. Give two examples of when an explicit…

A: Note : Since multiple questions have been  uploaded , only the first question shall be answered at a…

Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…

A: The opportunity cost refers to the value or cost of the next best alternative among all available…

Q: Suppose ATC (Q=500) = $300 per unit & ATC(Q=501) = $301 per unit, where Q denotes output level, ATC…

A: GIVEN     Suppose ATC (Q-500) = $300 per unit  ATC(Q=501) = $301 per unit where Q denotes outout…

Q: Economist describe short run decisions as constrained decisions while long run decision are…

A: In the short run, few costs are fixed and few are variable but in the long run their will be no…

Q: A company produces two products.  FC = Total Fixed costs = $580 VC1= variable costs from product 1 =…

A: Total fixed cost is independent of output produced whereas variable cost varies with the level of…

Q: Calbee spent $100 to make 10 face shields. Calculate the average fixed cost of each face shield if…

A: Given  Total Cost = $100 Quantity = 10 units  Total Variable Cost = $50   Total Cost = Total Fixed…

Q: One of the components of direct cost of construction projects is equipment cost where a contractor…

A: The cost of rented or owned construction equipment, as well as the costs of fuel, loading,…

Q: Short-run costs that do not depend on the level of output are A) total variable costs only. B) total…

A: The cost is the money spent to purchase the factor of production by the producer. There there are…

Q: Question 24.24.  Variable costs are  sunk costs.        costs that change every day.        costs…

A: Total variable cost (TVC) is the cost of variable inputs, such as raw material and labor. To produce…

Q: Why can the distinction between fixed costs and variable costs be made in the short run? Classify…

A: There are some costs that will not change as the level of output changes. If the firm wants to…

Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A: Answer: Normal profit: normal profit occurs when the value of economic profit is zero. Economic…

Q: Multiple Choice Question : 5.2) Which statement accurately describes the relationship between…

A: Answer: option a (Average fixed costs will always decline as the output increases) Explanation: The…

Q: What is the formula to calculate profits?

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: If producing more output increases average cost then         a)there are diseconomies of scale.…

A: Answer to the question is as :

Q: Confetti Bakery sells bread, cake, and other baked goods. After analyzing their production and…

A: For production of goods and services, firms hire factors of production from the household sector in…

Q: A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is…

A: Marginal Revenue Product(MRP) is the revenue(R) generated by an additional vehicle used for…

Q: Explain why understanding the cost curves and various types of costs is important for businesses…

A: The expenses that are being incurred for running a business and carrying out various transactions of…

Q: In the short term, the company produces 800 units of production. The average variable costs (AVC) 93…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: 31. Marginal cost is a Total cost per unit of output b. Average total cost divided by the quantity…

A: 31) Marginal costs are defined as a function of the total cost of production, the costs include both…

Q: A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is…

A:

Q: 7 A firm has this cost function: C = 4000 - 7Q + 8Q2. The firm is currently producing 5 units of its…

A: Cost Function = C = 4000 - 7Q + 8Q2  where Q = 5

Q: firm has fixed costs, then its ________ cost exceeds its ________ cost. a.average total; average…

A: Here, Q = quantity  ATC = average total cost  TVC = total variable cost AVC = average total cost…

Q: Answer the following Questions. Include referencing where additional sources have been used a. Why…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: planning for the company. You are required to generate costs data from the equation below. C(y) =…

A: Answers   Total Cost: C(y) = 23y2 + 12y + 8   A. Fixed Cost = Total cost when y = 0   C(y) = 23(0)2…

Q: True or false The unit share of fixed costs changes in a direct direction with the change in the…

A: Fixed cost: It is the cost that remains constant and does not get affected by the increase or…

Q: What happen when you add Total Fix Cost and Total Variable cost that is divided by their quantity.…

A: Production cost is the monetary value that is used to acquire factor of production to produce goods…

Q: Which of the following statements about cost drivers in ABC systems is FALSE? 1 cost driver for a…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: List several fixed and variable costs associated with owning and operating an automobile. Suppose…

A: The fixed cost is incurred whether an activity take place or not. The variable cost varies with the…

Q: .Which of the following is an example of a fixed cost? A. cost of employees who work overtime B.…

A: In general, a firm incurs various costs in the daily business and these costs can be classified as…

Q: Assume: A firm pays $500 for a unit of capital. This capital generates $500 of total revenue. The…

A: Explicit cost is fixed and variable costs of making a decision. Implicit cost is the opportunity…

Q: A firm faces the following costs: total cost of capital = $4,000; price paid for labor = $20 per…

A: Total cost before improvement = 4000 + (20*200) + (500*8) = 4000 + 4000 + 4000 = $ 12000

Q: Which of the following are likely to be fixed costs and which variable costs for a chocolate factory…

A: Fixed Cost refers to the cost that remains constant over a period of time irrespective of the amount…

Q: wheel making company has the following data related to cost: Total Cost = $ 15000 + 1000X and Total…

A:

Q: ABC Ltd. makes a television table that sells for $60 per unit. It has variable costs of $20 per unit…

A: Since you have asked multiple question, we will solve the first question for you. If youwant any…

Q: A small coffee house has the following costs:  building and pizza oven rentals 100,000  labor…

A: Since we only attempt upto 3 subparts, we shall answer a, b and c only. Please resubmit the question…