Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and implicit costs of attending college? Why does the economist classify normal profit as a cost? Is economic profit a cost of production?

Q: Explain the implicit costs associated with pursuing an MBA.  Which do you think are greater for a…

A: Implicit costs, also known as imputed costs, represent the opportunity cost of using resources that…

Q: How does a cost behave in response to a change in activity? Give an example?

A: Cost also changes with the change in the activity. There are two types of costs- fixed costs and…

Q: At what level of production does the marginal cost have the least value? What is the marginal cost…

A: The marginal cost curve is the U-shaped curve.

Q: Another important law in economics is the “law of marginal returns or the law of increasing costs".…

A: Marginal return refers to the additional output that obtained by increasing one more unit of input.

Q: Describe marginal cost in your own words.

A: Cost accounting is a method of financial management that examines a business's variable and fixed…

Q: What is the explicit and implicit cost? Can explicit or implicit be used for a business or…

A: Cost refers to the sum of money a corporation spends on making or producing products or services.…

Q: Distinguish between explicit and implicit costs, giving examples of each. Why does the economist…

A: Externalities: It occurs in the economy when the production of goods and services and the…

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: What are two examples of variable costs?

A: Variable costs depends on the level of output being produced by the firm.

Q: When thinking about cost analysis in Microeconomics, what are the real-world problems that occur…

A: Economies of scale are cost savings that can arise when a business expands the production scale and…

Q: Why is a normal profit considered an economic cost?

A: Why is a normal profit considered an economic cost?  Normal profit is an economic term, refers to a…

Q: A student once said she 'didn't believe in sunk costs. She meant that the idea that 'some costs are…

A: Sunk cost refers to the costs that has been paid already and cannot be recovered. That means it is…

Q: Why producers must take important notice of marginal output when minimizing cost?

A: Marginal product is the output produced by using one additional unit of factor.

Q: What are different types of costs involved in production of goods and services? Analyze the…

A: Fixed expenses, variable costs, and the total cost of production make up the cost of production. The…

Q: Firms are facing a lot of challenges when dealing with their costs of production. Analyze a fixed…

A: Fixed cost refers to the cost of production that the firm has to incur irrespective of output. This…

Q: a. A producer borrows money and starts a business. He himself looks after the business. Identify…

A:

Q: Which of the following statements correctly explains the average cost and the marginal cost of…

A: Marginal cost refers to additional cost that incurs from producing one more unit of output.