Efficiency, equity and production costs<\/p>\n
Instructions<\/p>\n
After reviewing the study material for this module, answer the following exercise.<\/p>\n
Exercise I: Explicit and implicit costs (20 points total\/5 points each)<\/p>\n
Determine and explain whether each of the following is an explicit or implicit cost:<\/p>\n
Remember to explain in one or two sentences the reason for your answer.<\/p>\n
The wage income that an owner could earn if he were not working for himself.<\/p>\n
The payment of rent for a warehouse that is rented by the company.<\/p>\n
The possible income received for the rental to another company of a building owned by the company that uses it as a warehouse for its own production.<\/p>\n
Payments made for hired labor in the labor market.<\/p>\n
Exercise II: Economic Efficiency: Measures of Profit or Loss (20 points total\/5 points each)<\/p>\n
Calculate the accounting profit or loss as well as the economic profit or loss in each of the following situations:<\/p>\n
Note: To receive the full score, you must present the procedure of your calculations to obtain the result; results without procedure will not be acceptable.<\/p>\n
A company with total revenues of $130 million, explicit costs of $80 million, and implicit costs of $20 million<\/p>\n
A company with total revenues of $145 million, explicit costs of $110 million, and implicit costs of $15 million<\/p>\n
A company with total revenues of $110 million, explicit costs of $80 million, and implicit costs of $50 million<\/p>\n
A business with total revenue of $350,000, explicit costs of $395,000, and implicit costs of $40,000<\/p>\n","protected":false},"excerpt":{"rendered":"
Efficiency, equity and production costs Instructions After reviewing the study material for this module, answer the following exercise. Exercise I: Explicit and implicit costs (20 points total\/5 points each) Determine and explain whether each of the following is an explicit or implicit cost: Remember to explain in one or two sentences the reason for your […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-106639","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/106639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=106639"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/106639\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=106639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=106639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=106639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}