Explicit cost, Microeconomics

Explicit cost:

Explicit costs are payments made by the firm when it purchases or hires factors of production for the production of goods and services. They are also referred to as historical costs. They may include rents on land, wages and salaries of labour, interest or dividend earnings on capital and producer’s normal profit.

Economies of scale are the “advantages” of large-scale production.The expression “advantages” is used to represent benefits that help the firm to produce at reduced unit cost of production as a result of increasing all inputs in the long run. They are classified into internal economies of scale and external economies of scale.

Posted Date: 1/2/2013 11:38:00 PM | Location : United States

Related Discussions:- Explicit cost, Assignment Help, Ask Question on Explicit cost, Get Answer, Expert's Help, Explicit cost Discussions

Write discussion on Explicit cost
Your posts are moderated
Related Questions
Impact of government legislations on business in india Government in India plays a dominant role in the Indian business activity. It directs and regulates the private business and

PARAMETERS FOR ASSESSING ECONOMIC REFORMS: Let it be clearly understood that liberalisation, privatisation and globalisation are means with the help of which the growth proces

Problem 1: a. Describe the concept of opportunity cost, using the production possibility curve. b. What are the fundamental problems of an economy? Describe how the command

KEYNES' THEORY AND EXPECTATIONS : Expectations played a major role in Keynes' theory of the determination of aggregate output and employment in market economies in the short run

to what extent are interest rates determined by the economic theory

Uses of population census: It is used to determine the size and the growth rate of the population at a country. The helps the government in planning for education, transporta

draw a production possibility frontier task using the graph and value and identity the pareto efficent and inefficient point and the marginal oppotunity cost of x for each point of

Government Budget Deficits Governments have been traditionally spending more what they could earn by way of taxes and sale of economic goods and services produced by them. The