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

Stock market, Stock Market: A place where shares of joint stock corporation...

Stock Market: A place where shares of joint stock corporations are sold andbought. Most modern stock markets no longer have a physical presencehowever rather connected computer net

Seaports and airports - transport infrastructure, Seaports and Airports: ...

Seaports and Airports: Seaports India has 12 major ports and about 185 minor ports over its coastline spread over 7,000 kms. Major ports are managed by the Central Government

Estimating Industry Demand for Fresh Market Carrots, this is a project I ne...

this is a project I need help answering the questions

Microeconomics, I need help on MCQs on international trade and imperfect co...

I need help on MCQs on international trade and imperfect competetion

Linder theory, According to the Linder theory ,trade will occur in goods th...

According to the Linder theory ,trade will occur in goods that have overlapping demand. With aid of a graph ,illustrate this theory and its implications

The theory of Consumer Choice and Production and cost, ECM101 – MICROECONOM...

ECM101 – MICROECONOMIC POLICY ASSIGNMENT 1 General Guidelines: This assignment comprises two sections and you must answer all questions in each section. Answers must be explained

EM13106443, May I get a quote on title EM13106443. Thanks

May I get a quote on title EM13106443. Thanks

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