Identify the costs and revenues that economists include while calculating profit that accountants do not include.

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Answer 1

Question

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

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Students have asked these similar questions

1. Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer. State the condition for a consumer's utility maximizing choice and illustrate graphically. 2. Consider the following table of long-run total costs for three different firms: Quantity Total Cost ($) Firm A Firm B Firm C 1 60 11 21 2 70 24 34 3 80 39 49 4 90 56 66 5 100 75 85 6 110 96 106 7 120 119 129 Does each of these firms experience economies of scale or diseconomies of scale? Explain your answer with necessary calculations.

Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer.State the condition for a consumer's utility maximizing choice and illustrate graphically.

1. Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer. State the condition for a consumer's utility maximizing choice and illustrate graphically.

Answer 2

Question

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

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Answer 3

Question

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

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Answer 4

Question

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

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Answer 5

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

Answer 6

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

Answer 7

Chapter 11, Problem 1QE

To determine

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Answer 8

Expert Solution & Answer

Explanation of Solution

According to the trend, compared with the accountants, economists include all opportunity costs as costs. It includes both explicit costs as well as the implicit costs. For instance, the opportunity costs of production factors are generated by the business owners. The accountants do not include implicit cost as a cost while calculating the profit. On the other hand, economists consider fluctuations in the value of any of the company’s assets in income and total sales. At the same time, accountants are limited to total sales. For instance, the implicit revenue changes in the value of any assets owned by the firms. Such as its own building and equipment.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 11.1 - Prob. 1Q Ch. 11.1 - Prob. 2Q Ch. 11.1 - Prob. 3Q Ch. 11.1 - Prob. 4Q Ch. 11.1 - Prob. 5Q Ch. 11.1 - Prob. 6Q Ch. 11.1 - Prob. 7Q Ch. 11.1 - Prob. 8Q Ch. 11.1 - Prob. 9Q Ch. 11.1 - Prob. 10Q

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Identify the costs and revenues that economists include while calculating profit that accountants do not include.

Explanation of Solution

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