The explicit or implicit cost in each case. Concept Introduction: A direct payment made to others in the course of running a business is called explicit cost. The cost that has already occurred but is not necessarily shown or reported as a separate expense is called implicit cost.

Question

TOTAL AND MARGINAL PRODUCT Total Product [Output] 70 60 50 40 30 20 10 0 Marginal Product 20 10 0 -10 -20 1 Labor Input 1 2 2 2 3 3 4 5 5 6 6 7 7 8 Labor Input 8 Reset Labor Input 8 EEPRODUCTIVITY CALCULATIONS Labor Input 0 Output 0 Marginal Product structions: Move the slider at the bottom of the diagram to change the quantity of labor hired for both graphs and the table. ) What is the marginal product of the third worker? ) What is the marginal product of the fifth worker? c) If units of output are sold for $0.80 each, how much revenue does the firm gain by selling the additional units attributed to the 3rd worker? $ How much revenue does the firm gain by selling the additional output from the fifth worker? $

Answer 1

Question

Chapter 7, Problem 2P

To determine

To Determine: The explicit or implicit cost in each case.

Concept Introduction:

A direct payment made to others in the course of running a business is called explicit cost. The cost that has already occurred but is not necessarily shown or reported as a separate expense is called implicit cost.

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