Which would be an implicit cost for a firm? The cost of: A. Property insurance B. Property tax C. Raw materials D. Wages foregone by the owner of the firm
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18. Which would be an implicit cost for a firm? The cost of:
A. Property insurance
B. Property tax
C. Raw materials
D. Wages foregone by the owner of the firm
Implicit costs:
The implicit cost refers to the opportunity cost of producing a particular commodity over another one. Implicit cost also involves the cost of spending time and effort on the production of a good and forgoing another. This is a concept of economic cost and not included the accounting cost of production.
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- Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?Are fixed costs also sunk costs? Explain.What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
- Which of the following is an implicit cost to a firm that produces a good or service? A. Labor costsB. Costs of operating production machineryC. Foregone profits of producing a different good or serviceD. Costs of renting or buying land for a production site7. Fixed costs faced by farmers typically include the following, except: A. FertilizerB. Property insuranceC. Property taxesD. Interest and rent payments0 Labo capit total Labors ur al product $20 FC 5 15 1 10 1 1 1 20 1 Question 6 Mr-Ali Alawi recently set a shoe manufacturing outlet. He is planning for production demand, labor requirement, fixed cost, variable cost, the revenue. He come up with the following schedule. Help him to fill up the schedule. Initially he plans to use one machine. Total fixed cost per month is expected to be $1000. The unit cost of labor is estimated to be $20. 0 25 75 100 VC=# of 150 0 100 200 300 1000 total Cost(FC+VATotal cost/ C) 100 1000 120 1000 140 1000 160 Marginal cost(MC) 400 1000 180 ATotal Product Total Revenue Profit
- Why does the marginal cost of production typically increase as the amount of output produced increases? a.A fixed factor of production causes diminishing marginal product b.Increasing returns to scale c.There are no fixed factors of production d.Decreasing returns to scaleQUESTION 26 A firm's average total cost is £80, its total fixed cost is £1000 and its output is 100 units. Its average variable cost is a. higher than £60 O b.£90 O c. between £40 and £60 O d. less than £40b. Manton Bakery is a company that bakes bread. Here is the relationship between the number of workers at the bakery and Manton's output in a given day: Workers 0 1 2 3 4 5 6 7 Output loaves 0 20 50 90 120 140 150 155 Marginal Total Average Product Cost Total Cost Marginal Cost (i) Fill in the column of marginal product. What pattern do you see? How might you explain it? (ii) A skilled baker costs £100 a day, and the firm has fixed costs of £200. Use this information to fill in the column for total cost. Fill in the columns for average total cost and marginal cost. What patterns do you see? (iii) Compare the column for average total cost and the column for marginal cost. Explain the relationship.
- Charlie Co. sells pastries and its production and cost table is given below. A workercosts $100 a day, the firm has fixed costs of $200.L Q MP MC TC ATC0 01 202 503 904 1205 1406 1507 155a. Complete the table above b. Compare the average total cost and the marginal cost and explain therelationship c. Describe the methods that can be used to determine where profit is maximized?A firm had sales revenue of $1 million lastyear .Its pent $600,000 on labor,$150,000 on capitaland $200,000on materials. What was the firm’s accounting profit? the firm’s factory sits on land owned by the firm that it could rent for $30,000 per year. What was the firm’s economic profit last year?What is the overhead cost for a company? The profit desired Labor costs The cost of doing business Both a and b