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

Objectives of the wto, Objectives of the WTO: The agreement establishi...

Objectives of the WTO: The agreement establishing the WTO reiterates the following objectives of the WTO:  •  Raising standards of living and incomes, ensuring full employm

Price floor , Suppose that the U.S. Department of Agriculture (USDA) admini...

Suppose that the U.S. Department of Agriculture (USDA) administers the price floor for cheese, set at $0.17 per pound of cheese. (The price floor is officially set at $16.10 per hu

What do you meant by informal economy, Q. What do you meant by Informal Eco...

Q. What do you meant by Informal Economy? Informal Economy:Informal sector of the economy represents the production of services and goods for the own-use of the producers or fo

Economic problems, economic problems are faced by all types of economies bu...

economic problems are faced by all types of economies but they are dealt with differently in different types of economies.discuss

Decay toothbruch, What is the arc cross elasticity of demand between Stop d...

What is the arc cross elasticity of demand between Stop decay''s toothbrush and Decay fighter''s toothbrush? What does this indicate about the relationship between the two products

Economics final paper analysis, This is what this paper should be about ...

This is what this paper should be about 1) In the first paragraph analyze what you most learned from the course to reflect on the statement below. 2) In each separat

Determine amplitude of the different diffracted plane wave, Consider a thin...

Consider a thin transparent plate whose thickness d(x,y) is a square (instead of a sinusoidal) periodic function of x of period Δ=λ. Show that the angle θ between the diffracted wa

Create a multi-dimensional arrays, Create a Document that displays informat...

Create a Document that displays information about cars. First, create a select with an id="make". It will not have any makes in the options until the page finishing loading. When t

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