A cost that is non-recoverable, such as the time and fuel costs spent driving to a ski area when deciding whether or not to ski in bad weather, is called a(n) O A. implicit cost. B. explicit cost. O C. sunk cost. D. accounting cost.

A cost that is non-recoverable, such as the time and fuel costs spent driving to a ski area when deciding whether or not to ski in bad weather, is called a(n) O A. implicit cost. B. explicit cost. O C. sunk cost. D. accounting cost.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...

See similar textbooks

Related questions

Q: Assume the cost of making 30 belts $800 the cost of makin 35 belts $900 and the cost equation is…

A: Marginal cost measures the change in total cost due to a change in quantity produced. Marginal cost…

Q: Joe quits his computer programming job, where he was earning a salary of$70,000per year, to start…

A: Accounting cost is the cost that is seen as money out from the bank account and recorded in the…

Q: 10.knowing that the total cost function is: TC = 200 + 3Q, Calculate the average fixed cost when…

A: A firm must choose an optimal combination of inputs so as to maximize profits and minimize its…

Q: The cost of any activity measured in terms of the vaule of the next best alternative forgone is…

A: When someone chooses any activity and leaves other, the value in terms of cost of the best option…

Q: b. If AC= Q?-4Q+10 i. Final the total cost and marginal cost function. Is this function is more…

A: TC = Q x AC = Q3 - 4Q2 + 10Q MC = dTC/dQ = 3Q2 - 8Q + 10

Q: The difference between variable cost and fxed cost is that Select one: a. fixed cost is paid even…

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

Q: Poornima is working for a marketing firm making $50,000 per year but considers starting her own…

A: Explicit Costs are the actual monetary payments made in cash in order to conduct the business…

Q: If average cost is $30 and the output is 15 units. Calculate total cost

A: (Q)If the average cost is $30 and the output is 15 units. Calculate total cost

Q: Is a type of cost which does not vary with the unit of production and will remain constant…

A: Cost refers to the money involved in producing the goods and services by the producers. They include…

Q: An explicit cost is defined as a cost that involves spending money. a cost that does not change as…

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

Q: For any given level of output Select one O A marginal cost must be greater than average cost ов…

A: We know that the relationship between MC and AC is as follows - When MC<AC, AC is falling, When…

Q: Suppose, Home Style is a well-known furniture manufacturer in the Sultanate. To meet the increasing…

A: The key motive of the firms operating in a market is to earn profits from the sale of goods and…

Q: Average total costs are falling Average total costs are rising Average total costs are minimized O…

A: Average total cost is alluded to as the aggregate of all creation costs partitioned by the total…

Q: Average total cost intersects marginal cost at minimum marginal cost. True False

Q: By doubling a machine's inputs, the output increases three times. How does this affect cost and what…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Which of the following would be categorized as an implicit cost? a. not being able to spend your…

A: The implicit cost is the cost that already occurred but is not recorded in the business. It is the…

Q: Accountants and Economists differ in their calculations of profits in that; Select one: a.…

A: Opportunity cost refers to the cost of a foregone opportunity. The cost involved when an opportunity…

Q: (a) Find the marginal cost function C'(x). C'(x) Use it to estimate how fast the cost is increasing…

A: Answer: Given values: To find: Marginal cost function and marginal cost (at 60,000) Average cost…

Q: When fixed costs are ignored because they are irrelevant to a business's production decision, they…

A: The question is asking us to identify the term used to describe fixed costs that are ignored because…

Q: Output AFC AVC ATC MC 1 300 100 400 100 2 150 75 225 50 3 100 70 170 60 4 75…

A: Total fixed cost is the sum of all fixed cost required to produce goods and services in a specific…

Q: Consider the following total cost function: where represents output and are constants. What can we…

A: Answer: (b) The firm experiences falling average fixed costs, but rising average variable costs.

Q: Molowing statoments is true? O An explicit cost is more important, dolar for dollar, than an…

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

Q: Which of the following is most likely to be a variable cost for a firm? an annual payment for…

A: Fixed cost does not depend on production whereas variable cost does. Variable cost increases with…

Q: uantity produced/day Total cost Variable cost 0 $50 0 1 $75 $50 2 $110 $75 3 $155 $100 4 $210 $150 5…

A: In a market, average variable cost is the per unit variable cost, marginal cost is the additional…

Q: Which of the following statements about average and marginal cost is INCORRECT? (2) (1) The marginal…

A: MARGINAL COST CURVE: A graph that shows the relationship between a firm's marginal cost in the…

Q: Which of the following describes an implicit cost? NO opportunity cost is involved. NO outlay of…

A: Cost can be of two types, explicit cost and implicit cost.

Question

A cost that is non-recoverable, such as the
time and fuel costs spent driving to a ski
area when deciding whether or not to ski in
bad weather, is called a(n)
O A. implicit cost.
OB. explicit cost.
O C. sunk cot.
OD. accounting cost.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

How does fixed cost affect marginal cost? Why is this relationship important?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
Are fixed costs also sunk costs? Explain.
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
What are explicit and implicit costs?
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
Which of tholowing statements is true? O An explicit cost is more important, dolar for dollar, than an implicit cost. An explicit cost is an actual cost an implicit cost is a theoretical cost. Economic costs include both explicit costs and implicit costs O Explicit costs are accounting costs, not economic costs, implicit costs are economic costs, not accounting cos