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

Economics, what is the differences between utility theory, indifference the...

what is the differences between utility theory, indifference theory and revealed preference theory

Explain how a floating exchange rate works, Explain how a floating exchange...

Explain how a floating exchange rate works and the variables which affect the rate. Define a floating exchange rate as the price of a currency (in terms of another or basket of

Competition and industry ., need to get assignment on income effect and sub...

need to get assignment on income effect and substuation effect how does increase in price of both comodity will affect the or show the new effect

Chapter 7, a firm has fixed costs of $60 and variable costs as indicated at...

a firm has fixed costs of $60 and variable costs as indicated at the bottom of this page. complete the table and check your calculations

Elasticity, what are the uses of cross elasticity quantity in demand/

what are the uses of cross elasticity quantity in demand/

A3, Consider the model of corruption explored by Shleifer and Vishni’s wher...

Consider the model of corruption explored by Shleifer and Vishni’s where there is one government-produced good X. There is a demand for that good described by the inverse demand eq

Need Econ Help, Two firms produce a pollutant called Q. The total costs of...

Two firms produce a pollutant called Q. The total costs of reducing emissions of Q are as follows for Firm 1 and Firm 2, respectively: TC1=10+100Q12 TC2=20 + 50Q22. This means tha

Value of intermediate products, Value Added:Value added in a particular sta...

Value Added:Value added in a particular stage of production equals value of total output, less the value of intermediate products (comprising raw materials, capital equipment and o

Examine recent developments in demand theory, Critically examine recent dev...

Critically examine recent developments in demand theoryon #Minimum 100 words accepted#

Double jeopardy, Double Jeopardy A condition where an entrepreneur's m...

Double Jeopardy A condition where an entrepreneur's main source of income and net worth depend on the entrepreneur's organization.

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