Explicit and implicit cost with example.

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Answer 1

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

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

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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Students have asked these similar questions

3. Consider a course allocation problem with strict and non-responsive preferences. Isthere a mechanism that is efficient and strategy-proof? If so, state the mechanismand show that it satisfies efficiency and strategyproofness. {hint serial dictatorship and show using example}4. Consider a course allocation problem with responsive preferences and at least 3students. Is there a mechanism that is efficient and strategy-proof that is not theSerial Dictatorship? If so, state the mechanism and show that it satisfies efficiencyand strategyproofness.5. Suggest a mechanism for allocating students to courses in a situation where preferences are non-responsive, and study its properties (efficiency and strategyproofness). Please be creative

3. Consider a course allocation problem with strict and non-responsive preferences. Isthere a mechanism that is efficient and strategy-proof? If so, state the mechanismand show that it satisfies efficiency and strategyproofness. {hint serial dictatorship}4. Consider a course allocation problem with responsive preferences and at least 3students. Is there a mechanism that is efficient and strategy-proof that is not theSerial Dictatorship? If so, state the mechanism and show that it satisfies efficiencyand strategyproofness.5. Suggest a mechanism for allocating students to courses in a situation where preferences are non-responsive, and study its properties (efficiency and strategyproofness). Please be creative

2. a) Consider a market where one firm (firm 1) currently produces, but a second firm (firm 2) is intending to enter and sell an identical product. The market has inverse demand given by p = 40 – Q, where Q is the total output sold in the market. Firm 1 has a marginal cost of 16 and firm 2 has a marginal cost of c < 16, with no fixed cost for either firm. Firm 2 has a choice of competing on price or quantity, with firms making their choices simultaneously (i.e. the market will be either a Bertrand or Cournot duopoly). If you were advising firm 2 on entering this market, how would you advise it to compete? To what extent would the size of firm 2’s cost advantage affect your advice? b) Now assume that firm 2 is aware that other firms are considering entering the market, so the market may over time change from a duopoly to an oligopoly with more than two firms. This would not change the nature of competition (i.e. any additional firms would set price or quantity in line with the first…

Answer 2

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

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

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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Answer 3

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

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

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

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

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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

Answer 5

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

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

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 6

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

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

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 7

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Answer 8

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

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

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 12

Ch. 9.2 - Prob. 1QQ Ch. 9.2 - Prob. 2QQ Ch. 9.2 - Prob. 3QQ Ch. 9.2 - Prob. 4QQ Ch. 9.5 - Prob. 1QQ Ch. 9.5 - Prob. 2QQ Ch. 9.5 - Prob. 3QQ Ch. 9.5 - Prob. 4QQ Ch. 9.8 - Prob. 1QQ Ch. 9.8 - Prob. 2QQ

Explicit and implicit cost with example.

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Explicit and implicit cost with example.

Explanation of Solution

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