Directions: Please response each of the following questions within a paragraph for each. Explain your ideas with theory and good examples where appropriate.
1 . Exactly what opportunity costs? How do explicit and implicit costs relate with opportunity costs? Opportunity costs is the cost of an alternative that needs to be forgone in order to pursue some action. Set another way, the advantages you could have received by taking another solution action. Acted is a cost that is displayed by misplaced opportunity in the use of a company's own resources, excluding cash. These are generally intangible costs that are not quickly accounted for. For example , the time and effort that an owner places into the repair of the company, firm rather than focusing on expansion. Explicit is a organization expense that is easily identified and accounted for. Explicit costs represent obvious, obvious outflows from a business that reduce its bottom-line profitability. This contrasts with less-tangible bills such as goodwill amortization, which can be not as very clear cut regarding their effects on a organisation’s bottom-line value. Good examples of explicit costs would be products such as salary expense, rent or rental costs, as well as the cost of supplies that type in the production of goods. With these kinds of expenses, it is possible to see the source of the cash output and the business activities that the expense is usually attributed. installment payments on your If the common total expense curve is definitely falling, what is necessarily the case of the little cost contour? If the typical total cost curve is usually rising, what is necessarily authentic of the marginal cost contour?
List and describe the characteristics of a perfectly competitive industry. A perfectly competitive market provides the following attributes.
Industry consists of buyers and sellers who are price takers. Each company in the market creates undifferentiated and homogenous products. Buyers and sellers have perfect information about the price current in the indicate. About the of goods...