Identify, the managerâ€™s salary is an implicit cost or an explicit cost.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 7, Problem 1SQP

(a)

To determine

Identify, the managerâ€™s salary is an implicit cost or an explicit cost.

(a)

Expert Solution

Explanation of Solution

Manager’s salary is an explicit cost because salary is a direct cost that is involved in the process of running a business.

Economics Concept Introduction

Explicit cost: Explicit cost refers to a direct cost incurred by the firm to others in the process of running a business such as wages, rents, materials, and so on. Thus, fixed cost and variable cost are included in the explicit cost.

(b)

To determine

Identify, payment to Dell for computers is an implicit cost or an explicit cost.

(b)

Expert Solution

Explanation of Solution

Payment to Dell for computers is an explicit cost because this cost involves in spending money.

(c)

To determine

Identify, salary forgone is an implicit cost or an explicit cost.

(c)

Expert Solution

Explanation of Solution

Salary forgone by the owner of a firm by operating his or her own company is an implicit cost because the person gives up his work in order to start his own business. Since the salary is given up for benefit, it is an implicit cost.

Economics Concept Introduction

Implicit costs: Implicit cost refers to the costs that have previously been incurred but are not initially shown as a separate expenditure. It denotes an opportunity cost that arises when a firm allocates internal resources.

(d)

To determine

Identify, interest forgone is an implicit cost or an explicit cost.

(d)

Expert Solution

Explanation of Solution

Interest forgone on a loan that an owner makes to his or her own company is an implicit cost because the person would earn the interest payment if he lent the amount outside the business. Thus, he has given up his interest rate.

(e)

To determine

Identify, medical insurance payment is an implicit cost or an explicit cost.

(e)

Expert Solution

Explanation of Solution

Medical insurance payment that a company makes for its employees is an explicit cost because it involves spending the money directly.

(f)

To determine

Identify, income forgone is an implicit cost or an explicit cost.

(f)

Expert Solution

Explanation of Solution

Income forgone while going to college is an implicit cost because the person has given up his income for going to college. Thus, there is a fall in the opportunity cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Describe the various measures used to assess poverty and economic inequality. Analyze the causes and consequences of poverty and inequality, and discuss potential policies and programs aimed at reducing them, assess the adequacy of current environmental regulations in addressing negative externalities. analyze the role of labor unions in labor markets. What is one benefit, and one challenge associated with labor unions.

Evaluate the effectiveness of supply and demand models in predicting labor market outcomes. Justify your assessment with specific examples from real-world labor markets.

Explain the difference between Microeconomics and Macroeconomics? 2.) Explain what fiscal policy is and then explain what Monetary Policy is? 3.) Why is opportunity cost and give one example from your own of opportunity cost. 4.) What are models and what model did we already discuss in class? 5.) What is meant by scarcity of resources?

Answer 2

Question

Chapter 7, Problem 1SQP

(a)

To determine

Identify, the managerâ€™s salary is an implicit cost or an explicit cost.

(a)

Expert Solution

Explanation of Solution

Manager’s salary is an explicit cost because salary is a direct cost that is involved in the process of running a business.

Economics Concept Introduction

Explicit cost: Explicit cost refers to a direct cost incurred by the firm to others in the process of running a business such as wages, rents, materials, and so on. Thus, fixed cost and variable cost are included in the explicit cost.

(b)

To determine

Identify, payment to Dell for computers is an implicit cost or an explicit cost.

(b)

Expert Solution

Explanation of Solution

Payment to Dell for computers is an explicit cost because this cost involves in spending money.

(c)

To determine

Identify, salary forgone is an implicit cost or an explicit cost.

(c)

Expert Solution

Explanation of Solution

Salary forgone by the owner of a firm by operating his or her own company is an implicit cost because the person gives up his work in order to start his own business. Since the salary is given up for benefit, it is an implicit cost.

Economics Concept Introduction

Implicit costs: Implicit cost refers to the costs that have previously been incurred but are not initially shown as a separate expenditure. It denotes an opportunity cost that arises when a firm allocates internal resources.

(d)

To determine

Identify, interest forgone is an implicit cost or an explicit cost.

(d)

Expert Solution

Explanation of Solution

Interest forgone on a loan that an owner makes to his or her own company is an implicit cost because the person would earn the interest payment if he lent the amount outside the business. Thus, he has given up his interest rate.

(e)

To determine

Identify, medical insurance payment is an implicit cost or an explicit cost.

(e)

Expert Solution

Explanation of Solution

Medical insurance payment that a company makes for its employees is an explicit cost because it involves spending the money directly.

(f)

To determine

Identify, income forgone is an implicit cost or an explicit cost.

(f)

Expert Solution

Explanation of Solution

Income forgone while going to college is an implicit cost because the person has given up his income for going to college. Thus, there is a fall in the opportunity cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 7, Problem 1SQP

(a)

To determine

Identify, the managerâ€™s salary is an implicit cost or an explicit cost.

(a)

Expert Solution

Explanation of Solution

Manager’s salary is an explicit cost because salary is a direct cost that is involved in the process of running a business.

Economics Concept Introduction

Explicit cost: Explicit cost refers to a direct cost incurred by the firm to others in the process of running a business such as wages, rents, materials, and so on. Thus, fixed cost and variable cost are included in the explicit cost.

(b)

To determine

Identify, payment to Dell for computers is an implicit cost or an explicit cost.

(b)

Expert Solution

Explanation of Solution

Payment to Dell for computers is an explicit cost because this cost involves in spending money.

(c)

To determine

Identify, salary forgone is an implicit cost or an explicit cost.

(c)

Expert Solution

Explanation of Solution

Salary forgone by the owner of a firm by operating his or her own company is an implicit cost because the person gives up his work in order to start his own business. Since the salary is given up for benefit, it is an implicit cost.

Economics Concept Introduction

Implicit costs: Implicit cost refers to the costs that have previously been incurred but are not initially shown as a separate expenditure. It denotes an opportunity cost that arises when a firm allocates internal resources.

(d)

To determine

Identify, interest forgone is an implicit cost or an explicit cost.

(d)

Expert Solution

Explanation of Solution

Interest forgone on a loan that an owner makes to his or her own company is an implicit cost because the person would earn the interest payment if he lent the amount outside the business. Thus, he has given up his interest rate.

(e)

To determine

Identify, medical insurance payment is an implicit cost or an explicit cost.

(e)

Expert Solution

Explanation of Solution

Medical insurance payment that a company makes for its employees is an explicit cost because it involves spending the money directly.

(f)

To determine

Identify, income forgone is an implicit cost or an explicit cost.

(f)

Expert Solution

Explanation of Solution

Income forgone while going to college is an implicit cost because the person has given up his income for going to college. Thus, there is a fall in the opportunity cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 1SQP

(a)

To determine

Identify, the managerâ€™s salary is an implicit cost or an explicit cost.

(a)

Expert Solution

Explanation of Solution

Manager’s salary is an explicit cost because salary is a direct cost that is involved in the process of running a business.

Economics Concept Introduction

Explicit cost: Explicit cost refers to a direct cost incurred by the firm to others in the process of running a business such as wages, rents, materials, and so on. Thus, fixed cost and variable cost are included in the explicit cost.

(b)

To determine

Identify, payment to Dell for computers is an implicit cost or an explicit cost.

(b)

Expert Solution

Explanation of Solution

Payment to Dell for computers is an explicit cost because this cost involves in spending money.

(c)

To determine

Identify, salary forgone is an implicit cost or an explicit cost.

(c)

Expert Solution

Explanation of Solution

Salary forgone by the owner of a firm by operating his or her own company is an implicit cost because the person gives up his work in order to start his own business. Since the salary is given up for benefit, it is an implicit cost.

Economics Concept Introduction

Implicit costs: Implicit cost refers to the costs that have previously been incurred but are not initially shown as a separate expenditure. It denotes an opportunity cost that arises when a firm allocates internal resources.

(d)

To determine

Identify, interest forgone is an implicit cost or an explicit cost.

(d)

Expert Solution

Explanation of Solution

Interest forgone on a loan that an owner makes to his or her own company is an implicit cost because the person would earn the interest payment if he lent the amount outside the business. Thus, he has given up his interest rate.

(e)

To determine

Identify, medical insurance payment is an implicit cost or an explicit cost.

(e)

Expert Solution

Explanation of Solution

Medical insurance payment that a company makes for its employees is an explicit cost because it involves spending the money directly.

(f)

To determine

Identify, income forgone is an implicit cost or an explicit cost.

(f)

Expert Solution

Explanation of Solution

Income forgone while going to college is an implicit cost because the person has given up his income for going to college. Thus, there is a fall in the opportunity cost.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 1SQP

(a)

To determine

Identify, the managerâ€™s salary is an implicit cost or an explicit cost.

(a)

Expert Solution

Explanation of Solution

Manager’s salary is an explicit cost because salary is a direct cost that is involved in the process of running a business.

Economics Concept Introduction

Explicit cost: Explicit cost refers to a direct cost incurred by the firm to others in the process of running a business such as wages, rents, materials, and so on. Thus, fixed cost and variable cost are included in the explicit cost.

(b)

To determine

Identify, payment to Dell for computers is an implicit cost or an explicit cost.

(b)

Expert Solution

Explanation of Solution

Payment to Dell for computers is an explicit cost because this cost involves in spending money.

(c)

To determine

Identify, salary forgone is an implicit cost or an explicit cost.

(c)

Expert Solution

Explanation of Solution

Salary forgone by the owner of a firm by operating his or her own company is an implicit cost because the person gives up his work in order to start his own business. Since the salary is given up for benefit, it is an implicit cost.

Economics Concept Introduction

Implicit costs: Implicit cost refers to the costs that have previously been incurred but are not initially shown as a separate expenditure. It denotes an opportunity cost that arises when a firm allocates internal resources.

(d)

To determine

Identify, interest forgone is an implicit cost or an explicit cost.

(d)

Expert Solution

Explanation of Solution

Interest forgone on a loan that an owner makes to his or her own company is an implicit cost because the person would earn the interest payment if he lent the amount outside the business. Thus, he has given up his interest rate.

(e)

To determine

Identify, medical insurance payment is an implicit cost or an explicit cost.

(e)

Expert Solution

Explanation of Solution

Medical insurance payment that a company makes for its employees is an explicit cost because it involves spending the money directly.

(f)

To determine

Identify, income forgone is an implicit cost or an explicit cost.

(f)

Expert Solution

Explanation of Solution

Income forgone while going to college is an implicit cost because the person has given up his income for going to college. Thus, there is a fall in the opportunity cost.

Answer 6

Chapter 7, Problem 1SQP

(a)

To determine

Identify, the managerâ€™s salary is an implicit cost or an explicit cost.

(a)

Expert Solution

Explanation of Solution

Manager’s salary is an explicit cost because salary is a direct cost that is involved in the process of running a business.

Economics Concept Introduction

Explicit cost: Explicit cost refers to a direct cost incurred by the firm to others in the process of running a business such as wages, rents, materials, and so on. Thus, fixed cost and variable cost are included in the explicit cost.

Answer 7

Chapter 7, Problem 1SQP

(a)

To determine

Identify, the managerâ€™s salary is an implicit cost or an explicit cost.

Answer 8

(a)

Expert Solution

Explanation of Solution

Manager’s salary is an explicit cost because salary is a direct cost that is involved in the process of running a business.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

Explicit cost: Explicit cost refers to a direct cost incurred by the firm to others in the process of running a business such as wages, rents, materials, and so on. Thus, fixed cost and variable cost are included in the explicit cost.

Answer 13

(b)

To determine

Identify, payment to Dell for computers is an implicit cost or an explicit cost.

(b)

Expert Solution

Explanation of Solution

Payment to Dell for computers is an explicit cost because this cost involves in spending money.

Answer 14

(b)

To determine

Identify, payment to Dell for computers is an implicit cost or an explicit cost.

Answer 15

(b)

Expert Solution

Explanation of Solution

Payment to Dell for computers is an explicit cost because this cost involves in spending money.

Answer 16

(b)

Expert Solution

Answer 17

(b)

Expert Solution

Answer 18

Expert Solution

Answer 19

(c)

To determine

Identify, salary forgone is an implicit cost or an explicit cost.

(c)

Expert Solution

Explanation of Solution

Salary forgone by the owner of a firm by operating his or her own company is an implicit cost because the person gives up his work in order to start his own business. Since the salary is given up for benefit, it is an implicit cost.

Economics Concept Introduction

Implicit costs: Implicit cost refers to the costs that have previously been incurred but are not initially shown as a separate expenditure. It denotes an opportunity cost that arises when a firm allocates internal resources.

Answer 20

(c)

To determine

Identify, salary forgone is an implicit cost or an explicit cost.

Answer 21

(c)

Expert Solution

Explanation of Solution

Salary forgone by the owner of a firm by operating his or her own company is an implicit cost because the person gives up his work in order to start his own business. Since the salary is given up for benefit, it is an implicit cost.

Answer 22

(c)

Expert Solution

Answer 23

(c)

Expert Solution

Answer 24

Expert Solution

Answer 25

Economics Concept Introduction

Implicit costs: Implicit cost refers to the costs that have previously been incurred but are not initially shown as a separate expenditure. It denotes an opportunity cost that arises when a firm allocates internal resources.

Answer 26

(d)

To determine

Identify, interest forgone is an implicit cost or an explicit cost.

(d)

Expert Solution

Explanation of Solution

Interest forgone on a loan that an owner makes to his or her own company is an implicit cost because the person would earn the interest payment if he lent the amount outside the business. Thus, he has given up his interest rate.

Answer 27

(d)

To determine

Identify, interest forgone is an implicit cost or an explicit cost.

Answer 28

(d)

Expert Solution

Explanation of Solution

Interest forgone on a loan that an owner makes to his or her own company is an implicit cost because the person would earn the interest payment if he lent the amount outside the business. Thus, he has given up his interest rate.

Answer 29

(d)

Expert Solution

Answer 30

(d)

Expert Solution

Answer 31

Expert Solution

Answer 32

(e)

To determine

Identify, medical insurance payment is an implicit cost or an explicit cost.

(e)

Expert Solution

Explanation of Solution

Medical insurance payment that a company makes for its employees is an explicit cost because it involves spending the money directly.

Answer 33

(e)

To determine

Identify, medical insurance payment is an implicit cost or an explicit cost.

Answer 34

(e)

Expert Solution

Explanation of Solution

Medical insurance payment that a company makes for its employees is an explicit cost because it involves spending the money directly.

Answer 35

(e)

Expert Solution

Answer 36

(e)

Expert Solution

Answer 37

Expert Solution

Answer 38

(f)

To determine

Identify, income forgone is an implicit cost or an explicit cost.

(f)

Expert Solution

Explanation of Solution

Income forgone while going to college is an implicit cost because the person has given up his income for going to college. Thus, there is a fall in the opportunity cost.

Answer 39

(f)

To determine

Identify, income forgone is an implicit cost or an explicit cost.

Answer 40

(f)

Expert Solution

Explanation of Solution

Income forgone while going to college is an implicit cost because the person has given up his income for going to college. Thus, there is a fall in the opportunity cost.