Opportunity cost differs from accounting costs because of: A. implicit costs B. accounting profits C. economic profits D. explicit costs An implicit rental rate is A. an opportunity cost. B. a cost that is irrelevant to the business. C...
Implicit costs are opportunity costs of using the resources of a. outsiders. b. owners. c. banks. d. retained earnings. Implicit Costs: Implicit costs are those costs that are incurred but never paid for. Opportunity costs are such costs because no pay...
Question: If implicit costs are positive, accounting profit will be--- economic profit. A. less than. B. greater than. C. equal to. D. none of the above. Economic Profit: Economic profit is a measure of how attractive an alternative ...
Answer to: Normal profit covers: a. explicit and implicit costs. b. explicit cost only. c. opportunity cost of any interest forgone. d. implicit...
The present value of an expected future payment as the interest rate increases. A. falls B. rises C. is constant D. is unaffected The price paid for the use of money is defined as the: a. rental rate b. interest rate c. profit rate d. inflation rate ...
Answer to: Economic profit is: a. always less than accounting profit b. always zero c. always more than accounting profit d. accounting profit less...
Income tax payments are an example of ___. a. implicit costs b. explicit costs c. normal return on investment d. shareholder wealth e. None of the above. Expenses: In accounting, expenses are total cash and non-cash d...
An implicit rental rate is A. an opportunity cost. B. a cost that is irrelevant to the business. C. an accounting cost. D. an explicit cost. In the short-run, a firm's total costs can be defined as: a. The sum of the explicit...
Say that the cost function for producing Milk Bottles is given by: T C = q(2r + w) where q is the output of Milk Bottles, r is the rental rate for Milk Bottles, and w is the hourly wage. Explain why At 1,000 workers, USA produces 2,750,000...
The implicit rental rate can be either greater than or less than the firm's cost of capital. However, if the implicit rental rate remains lower than the firm's cost of capital for an extended period, the firm is at risk of going out of business. This is because the firm's cost to ...