What are some of the implicit cost incurred by an entrepreneur in running a firm? How are these implicit costs estimated?

Q: Question:  What are the kinds of cost which firm face in short run. Explain theoretically and…

A: Short run is the time period wherein some inputs are held fixed while other inputs are variable. In…

Q: 1.Would you consider an interest payment on a loan to a firm an explicit or implicit cost?

A: Implicit cost: It can not de directly conveyed in monetary terms. For example, cost related to…

Q: Explain the term Explicit and Implicit costs. Give examples

A: Implicit costs are costs that arise which are not registered for accounting purposes without…

Q: You are analyzing a new company’s records projecting their profits using a marginal profit function,…

A: We are going to use marginal approach to answer this question.

Q: Distinguish between implicit and explicit costs. How is it possible to have positive accounting…

A: Any cost that has already occurred but is not shown or reported as a distinct item is referred to as…

Q: Tom leases a farmer's field for $100 a day and grows pineapples. He pays students $70 a day to pick…

A: Total cost is the sum of fixed cost and variable cost.

Q: Ing fong TC = 8Q³ - 96Q² + 32Q Derive the expressions for marginal cost and average cost. What is…

A: Average cost: ‘average cost’ is the ‘total cost’ divided by the number of units of the good. It…

Q: In the graph below, you can see the iso-cost curve and the iso-quant curve for the firm to produce q…

A: the iso-cost curve is his budget line. An iso-cost line is a graph that depicts numerous input…

Q: tal cos

A: The theory of cost-of-production states that the price of an object or a condition is in turn being…

Q: Nimbus Ltd. makes brooms and then sells them door to door. Here is the relationship between the…

A: The cost table, a) Marginal product = Change in total product/ Change in the number of workers At L…

Q: onvert the following total variable cost schedule for UP Against the Wall Industries into the total…

A: Total cost = Total variable cost + Total fixed cost Average fixed cost = Total fixed cost /…

Q: Katie's Quilts is a small retailer of quilts and other bed linen products. Katie currently purchases…

A: Cost is the expenditure that is incurred in producing goods and services. It has two components that…

Q: A car company has fixed costs of $20, 000. Its marginal costs are given in the table below. Fill in…

A: We have been given with the table of costs. The table has been filled correctly.

Q: If a firm wanted to know how much it would save by producing one less unit of output, it would look…

A: TC (Total) is the cost which is incurred by a firm in producing some specific level of output. It is…

Q: What happens when a company doesn't follow economic thoery and charges pries below the marginal…

A: At the point when an organization doesn't follow economic theory and charges costs below the…

Q: 210 270 315 4 380 475 630 On the following graph, plot Douglas Fur's average total cost (ATC) curve…

A: Fixed cost is independent of output produced. Thus required fixed cost is $120. Variable cost varies…

Q: 11.)(*) Ollah’s Organic Pet Shop sells about 4,000 bags of free- range dog biscuits every year. The…

A: We are going to use Economic Order Quantity and Total holding & operating cost concept to answer…

Q: endy decides to open her own business and earns 70,000 in accounting profit the first year. When…

A: The measure that depicts expenses that are incurred by a business for carrying out its day-to-day…

Q: Assume that the most efficient production technology available for making vitamin pills has the cost…

A: a) Output TC MC ATC 25000 100000 0.5 100000/25000= 4 50000 150000 1 150000/50000= 3 75000…

Q: 125 q? 4. 16 A(q) where q is the firm's output. (i) Determine the level of output for average costs…

A: Average Cost A(q) = 125q+q216-4    .............(1)    We know that the average cost is equal to the…

Q: 1) Looking back at the TFC (total fixed costs) what would the graph look like? (upward, downward,…

A: TFC is the total fixed cost which means all the cost which includes the fixed payments irrespective…

Q: e graph below illustrates a series of short-run average cost curves, numbered AC1 through AC5, which…

A: Economies of scale occurs when long run average cost falls as more output is produced. Long run…

Q: A young chef is considering opening his own sushi bar. To do so, he would have to quit his current…

A: The difference between implicit and explicit cost is important to understand the difference between…

Q: Quantity Total Fixed Costs Total Variable Costs (Dollars) (Dollars) 0 180 0 1 180 80 2 180 140 3 180…

A: 1) Variable Cost is the cost when nothing is produced therefore when output is zero variable cost is…

Q: A Chinese high technology manufacturing firm has a production function of (based on Zhang. et al.…

A: Given information: Production function: q = 13L0.20K0.80w= $2r = $8

Q: Graph the Average Total Costs, Average Variable Costs, and Marginal Costs on the same graph.

A: Average total cost is total cost divided by quantity.  ATC = TC / Q ------------------- Average…

Q: If Amit's Curry House took in $35 000 in revenue last week and had out-of-pocket expenses of $31…

A: please find the answer below.

Q: Explain the difference between and the economic relevance of fixed costs, sunk costs, variable…

A: The cost of production includes the cost of the raw materials, cost of the factors of production as…

Q: Ball Bearings, Inc., faces costs of production as follows:a. Calculate the company’s average fixed…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: Briefly explain what is meant by the term "fixed costs" and provide three examples of same.  What…

A: A) The term fixed expense alludes to an expense that doesn't change with an increment or decline in…

Q: Which of the following is considered when calculating economic profit but not accounting profit? a.…

A: Cost refers to the amount or equivalent paid or charged for something

Q: explain what is meant by explicit; implicit; and sunk costs. How are they used to calculate…

A: All the costs that are linked or incurred to the business activities of a company and are easily…

Q: 7) What is the relationship between AFC, AVC & ATC? How are these calculated? 8) A firms produces an…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: An economic consultant is presented  with the following total product table and askedto derive a…

A: Labor TP MP TC MC AC AP 1 5   10   2 5 2 15 10 20 1 1.33 7.5 3 30 15 30 0.667 1 10 4 36…

Q: Complete the following table of costs for a firm. (Note: enter the figures in the MC column between…

A: As per the guidelines, we are allowed to solve only the first three subparts. Please post the…

Q: How do you derive the marginal cost (MC) curve of a firm? b) How are average variable cost (AVC) and…

A: Marginal cost is the additional cost that is incurred in order to produce an additional unit of an…

Q: Quantity Total Fixed Costs Total Variable Costs (Dollars) (Dollars) 0 180 0 1 180 80 2 180 140 3 180…

A: Solution: (a)Formula used (i) Total cost (TC) = Total fixed cost (TFC)+ Total variable cost (TVC)…

Q: The blue line on the following graph shows a firm's daily costs for the first 90 days of the fiscal…

A: The area of shaded region will be equal to area of triangle OAB minus area of triangle OCD

Q: Why do most fixed costs become variable costs in the long run?

A: Variable costs- Due to the sum of a product or service being generated, variable costs change. The…

Q: Use the following data to answer the question. The letters A, B, and C designate three successively…

A: Economies of Scale and Minimum Efficient Scale Unit costs can be as low as possible while still…

Q: Explain average fixed cost (AFC)?

A: Costs are the sums of money spent by producers on various variables of production in order to…

Q: How is it possible to have positive accounting profit and negative economic profit concurrently?

A: Answer: Let us first understand the difference between accounting profit and economic profit.…

Q: 5) Sarah's Pretzel plant has the following short-run cost function: Cg, K) wg3 + 50K where q is…

A: Cost refers to the amount the is incurred for using factors of production to produce goods. Profit…

Q: A firm’s fixed costs for 0 units of output and its average total cost of producing different output…

A: All the table values can be calculated with the following formulae.

Q: Give the formulas for and plot average fixed cost, AFC, marginal cost, MC, average variable cost,…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…