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

Fiat money in europe , Fiat money is not a new idea.  Some European histori...

Fiat money is not a new idea.  Some European historians recognize the first use of fiat money in Europe resulting from gold and silver smiths issuing their customers receipts for g

Monopoly, Let''s assume that a monopolist decides to maximize revenue, rath...

Let''s assume that a monopolist decides to maximize revenue, rather than profit. How does this operating objective change the size of the deadweight loss?

Low standards of living, Low standards of living: In developing natio...

Low standards of living: In developing nations general standards of living tend to be very low for the vast majority of the people. These low standards of living are manifest

Capital account, Capital Account: The capital account deals with long an...

Capital Account: The capital account deals with long and short-term capital movement.These capital movements are referred to as autonomous because they take place for business o

Select demand schedule and a supply schedule for apples, •Create a demand s...

•Create a demand schedule and a supply schedule for your product.. •Using these schedules, draw a demand curve and a supply curve using PowerPoint or Excel. Use these to determine

Determine household production from the national accounts, What have been s...

What have been some justifications given for the historical exclusion of household production from the national accounts? Some reasons have included: a. households are not p

Explain how a city council might help to decrease traffic, Use a supply and...

Use a supply and demand diagram to help explain how a city council might help to decrease traffic congestion in the city during weekends. pointing out that demand happens d

Demographic profile, DEMOGRAPHIC PROFILE: A demographic profile of Ind...

DEMOGRAPHIC PROFILE: A demographic profile of India can be prepared out of the data collected by the office of the Registrar General of India who is the responsible authority

Market equilibrium, Assume that milk operates in a perfectly competitive ma...

Assume that milk operates in a perfectly competitive market, use a well labeled demand and supply model to explain how market equilibrium price of milk is being determined.

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