Explicit costs are accounting costs, Microeconomics

Assignment Help:

An economist's view of costs contains both explicit and implicit costs.  Explicit costs are accounting costs, and implicit costs are the opportunity costs of an allocation of resources (i.e., business decisions).  Accountants subtract total cost from total revenue and arrive a total accounting profits.  An economist, though, would include in the total costs of the firm the profits that could have been made in the next best business opportunity (e.g., the opportunity cost).  Thus, there is a significant dissimilarity in how accountants' and economists' view profits B economic profits versus accounting profits.

 


Related Discussions:- Explicit costs are accounting costs

What is laffer curve, What is Laffer curve The Laffer curve is named af...

What is Laffer curve The Laffer curve is named after Professor Art Laffer who suggested that as taxes enhanced from fairly low levels, tax revenue received by the government wo

Assignment , I need someone to solve my assignment

I need someone to solve my assignment

Salesmaximisation, fig2.3 elaplanition of sales maximisation

fig2.3 elaplanition of sales maximisation

Welfare analysis, Welfare Analysis 1-Of the following four institution...

Welfare Analysis 1-Of the following four institutions for allocating apartment to different people at different prices   i.  The competitive market  ii.  A discriminatin

Slustky equation, how slustky equation provides neat analytical expression ...

how slustky equation provides neat analytical expression for substitution and income effect?

What is Critical Temperature?, What is What is Critical Temperature? Why Cr...

What is What is Critical Temperature? Why Critical Temperature is Specified in Equation? Describe critical temperature specification...

Meter replacement cost, The town utilizes standard disc type PD water meter...

The town utilizes standard disc type PD water meters for all residential connections. These meters were warranted by the manufacturer to be accurate within two percent of actual f

Oxidation stete, write name and symbol of element from s-block that has zer...

write name and symbol of element from s-block that has zero oxidation state?

Find the marginal revenue, (i) When the demand function is 2Q - 24 + 3P = 0...

(i) When the demand function is 2Q - 24 + 3P = 0, find the marginal revenue when Q=3. (ii) Given the demand function 0.1Q - 10 +0.2P + 0.02P2 =0, calculate the price elasticity of

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd