Q)Distinguish between explicit and implicit costs, giving examples of each. (a) What are the explicit and implicit costs, say for example for joining university study? (b) Why does the economist classify normal profits as a cost? (c) Are economic profits a cost of production?

Q: (a) Explain the law of diminishing marginal returns in the Theory of Production. (b) Does this law…

A: The law of ‘diminishing marginal returns’ states that with the increase(↑) of a single production…

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

A:

Q: The table below shows Crystal's total cost of producing different quantities of tie-dyed t-shirts…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…

Q: What name is given to expenditures that must be made before production starts and that do not change…

A: The level of production, also known as the level of output, refers to the quantity of goods or…

Q: 3-a) Why do labor costs made up such a small percentage of the cost to produce an iPhone? 3-b) Where…

A: Cost of production is the total amount spent in the production to produce the goods. Labor cost…

Q: (a) What is meant by a firm's expansion path? (b) Name and explain the curve that can be produced…

A: Expansion path could be a graph which shows how a firm's cost minimizing input mix changes because…

Q: Suppose a firm’s cost function is given by C(q) = 20 + 10q − 4q^2 + q^3 (a) What is fixed cost? (b)…

A: Given information: We have given the cost function.  i.e., C=20 + 10q - 4q2 + q3 The cost function…

Q: Accounting profits are: A.) economic profit less explicit costs. B.) less than economic…

A: "There are two kinds of costs explicit costs (are out of the pocket costs for a firm) and implicit…

Q: A firm in a perfectly competitive industry has fixed costs of FC = 15, marginal costs of MC = 5 +…

A: Formulas of cost: 1. AVC  = TVC * q 2. TC = TVC + TFC where, AVC is Average Variable Cost TVC is…

Q: (a) Explain clearly the difference between accounting cost and economic cost. (b) Explain whether…

A: Running a company necessitates a constant awareness of the financial factors that influence net…

Q: Economic costs of production differ from accounting costs in that Select one:   a. economic costs…

A: There are many associated costs of production in the process of production. These costs can be of…

Q: QUESTION 12 Assume the following: • Marginal Cost = 10 • Average Total Cost = 12 What is happening…

A: Average Total Cost (AC): Average total cost is the ratio of total cost and units that that the firm…

Q: In the short term, if your friend has Rp 200,000,000 per week, how many apps is he able to produce?…

A: The production function shows the technical relationship between the inputs used and the output…

Q: Which of the following statements is an example of a Scale Effect? (A). The firm decides to…

A: Scale effect shows that cost advantage is experienced by the firm when it increases its output.

Q: Costs that are "fixed": a. do not vary in the short run, but can change in the long run. b. will…

A: In economics, the flexibility of input defines the long-run and short-run periods. Short run: The…

Q: In the, between what two levels of output does one first observe the law of diminishing returns?…

A: Law of diminishing returns states that when more and more units are added in the process of…

Q: 7. Which of the following are variable costs of production? Select one: A. the cost of electricity…

A: Cost refers to the expenses that incur in the process of production of goods and service. There are…

Q: Which of the following statement is correct? a. Marginal cost will equal average total cost when…

A: Let's first understand what's the meaning of marginal cost. The cost which is incurred on the…