Which Of The Following Is An Implicit Cost Of Production Group Of Answer Choices

Forgone lease payments from a building owned by the firm and used in production. Implicit cost is the opportunity cost which is incurred when the entity uses the owner s resources like capital inventory etc.

Economic Profit Boundless Economics

Forgone interest on funds the owner could have invested rather than putting them in the business all of the above are implicit costs none of the above are implicit costs.

Which of the following is an implicit cost of production group of answer choices. The firm s profit brought about by employing one more input. The 10 000 adam spent on equipment is the total cost of starting the business and the 12 000 he ll need to continue operations is a marginal cost. Read about what they are.

The firm s output brought about by emplying one additional unity of input. Located at the left or right side of the long run average cost curve but not the middle. A situation in which allowing all inputs to expand does not much change the average cost of production.

A situation where as the quantity of output goes up the cost per unit goes down. Forgone wages that the owner could have earned in another position. Product price brought about by changing production by one unit.

Fixed cost price marginal cost a business produces 4 000 units per month which it sells at 20 unit. Explicit cost is incurred when the entity has to pay for the utilisation of factors of production. A firm s revenue brought about by changing production by one unit.

A interest paid on a loan to a bank b rent that could have been earned on a building owned and used by the firm c the utility bill paid to water electricity and natural gas companies d wages paid to labor plus the cost of carrying benefits for workers. The variable cost of running the studio is 22 000. The 10 000 adam spent on equipment is a fixed cost of business and the 12 000 he ll need to continue operations is a variable cost.

The price in the market is greater than the average total cost of production c. Wages paid to labor plus the cost of carrying benefits for workers c. The price in the market is less than the average total cost of production b.

Which of the following is an implicit cost of production. There are different ways of thinking about costs and profit. The following are the major differences between explicit cost and implicit cost.

According to economic theory a firm in a competitive market should make a short run decision to shutdown production if. Interest paid on a loan to a bank b. 10 000 on raw materials 15 000 in wages for operators and 10 000 in wages to sales people.

Total cost brought about by changing production by one unit. Which of the following is an implicit cost of production. The utility bill paid to water electricity and natural gas companies d.

Rent that could have been earned on a building owned and used by the firm.

Solved Question 21 0 16 Pts One Difference Between Implic