Answers are 1.D 2.E 3.A 4.A 5.C....I need explanation for each of them. 4. Which of the following is considered when calculatingeconomic profit but not accounting profit?a. implicit costb. explicit costC. total revenue1. Which of the following is an example of an implicit cost of goingout for lunch?a. the amount of the tip you leave the waiterb. the total bill you charge to your credit cardc. the cost of gas to drive to the restaurantd. the value of the time you spent eating lunchd. marginal coste. All of the above are considered when calculating accountingprofit.e. all of the above2. Which of the following is an implicit cost of attending college?a. tuition5. You sell T-shirts at your school's football games. Each shirtcosts $5 to make and sells for $10. Each game lasts two hoursand you sell 100 shirts per game. You could always be earning$8 per hour at your other job. Which of the following is correct?Your accounting profit from selling shirts at a game isa. $1,000 and your economic profit is $500.b. $500 and your economic profit is $1,000.c. $500 and your economic profit is $484.d. $484 and your economic profit is $500.e. $500 and your economic profit is also $500.b. booksc. laptop computerd. lab feese. forgone salary3. Which of the following is the best definition of accountingprofit? Accounting profit equals total revenue minusdepreciation and totala. explicit cost only.b. implicit cost only.c. explicit cost plus implicit cost.d. opportunity cost.e. explicit cost plus opportunity cost.

Cost is the amount incurred by the producer or manufacturer for the production of goods and…

4. Which of the following is considered when calculating economic profit but not accounting profit? a. implicit cost b. explicit cost C. total revenue 1. Which of the following is an example of an implicit cost of going out for lunch? a. the amount of the tip you leave the waiter b. the total bill you charge to your credit card c. the cost of gas to drive to the restaurant d. the value of the time you spent eating lunch e. all of the above d. marginal cost e. All of the above are considered when calculating accounting profit. 2. Which of the following is an implicit cost of attending college? a. tuition 5. You sell T-shirts at your school's football costs $5 to make and sells for $10. Each game lasts two hours and you sell 100 shirts per game. You could always be earning $8 per hour at your other job. Which of the following is correct? Your accounting profit from selling shirts at a game is a. $1,000 and your economic profit is $500. b. $500 and your economic profit is $1,000. c. $500 and your economic profit is $484. d. $484 and your economic profit is $500. e. $500 and your economic profit is also $500. games. Each shirt b. books c. laptop computer d. lab fees e. forgone salary 3. Which of the following is the best definition of accounting profit? Accounting profit equals total revenue minus depreciation and total a. explicit cost only b. implicit cost only. c. explicit cost plus implicit cost. d. opportunity cost. e. explicit cost plus opportunity cost.

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4CQQ