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

Exercise 5Consider the demand and supply functions for the notebooks market.QD=10,000−100pQS=900pa. Make a table with the corresponding supply and demand schedule.b. Draw the corresponding graph.c. Is it possible to find the price and quantity of equilibrium with the graph method? d. Find the price and quantity of equilibrium by solving the system of equations.

1. Consider the market supply curve which passes through the intercept and from which the marketequilibrium data is known, this is, the price and quantity of equilibrium PE=50 and QE=2000.a. Considering those two points, find the equation of the supply. b. Draw a graph for this equation. 2. Considering the previous supply line, determine if the following demand function corresponds to themarket demand equilibrium stated above. QD=.3000-2p.

Supply and demand functions show different relationship between the price and quantities suppliedand demanded. Explain the reason for that relation and provide one reference with your answer.

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.