What is the difference between explicit costs and implicit costs? Explain your answer using examples
Explicit costs occur when an actual out-of-pocket payment is made. For example, a pencil manufacturing firm needs to pay wages to its workers. Implicit costs, however, do not record an out-of-pocket cost but instead quantify what has been given up. For example, a pencil manufacturer can invest his or her money in someone else's business and earn profits without taking the risk of entrepreneurship. This profit given up is an implicit cost of the business.
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Rio Tinto was able to introduce robotic machines into its mining operations because of developments in computer technology, the Global Positioning System (GPS), and robotics
The company's mining operations are an example of ________, in which devices directly communicate data to a computer without a person having to enter the data. A) Artificial Intelligence B) Technological Singularity C) the use of Big Data D) the Internet of Things
Looking only at the asset market, an increase in output would cause
A) the LM curve to shift down and to the right. B) the LM curve to shift up and to the left. C) an increase in the real interest rate along the LM curve. D) a decrease in the real interest rate along the LM curve.
The Employment Act of 1946 reflects which one of the following functions of government?
A) providing a legal system B) improving economy-wide stabilization C) correcting externalities D) providing public goods
With a negative income tax, if people get at least $10,000 and the breakeven point is $50,000, what is the tax rate?
A. 50 percent B. 25 percent C. 20 percent D. 5 percent