What do a firm's opportunity costs of production amount to? Question 13 options: explicit costs, implicit costs, and total revenue combined implicit costs only explicit costs and implicit costs combined explicit costs only

What do a firm's opportunity costs of production amount to? Question 13 options: explicit costs, implicit costs, and total revenue combined implicit costs only explicit costs and implicit costs combined explicit costs only

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 5MC

See similar textbooks

Related questions

Q: Describe three steps of Dynamics of Financial Crises in Emerging Market Economies.

Q: If the Phillips curve in an economy is given by π = π-1-0.5(u-0.02), then it takes 6 percentage…

A: The relationship between inflation and unemployment is explained by Philip's curve. According to it,…

Q: Wine B F C D Bread Refer to the diagram. Select which points match their proper designations.…

Q: 1. What advantages are there with an International Legal Agreements? Cite as many as you can and…

A: Formal understandings or pledges between two or more nations are known as international accords.A…

Q: Suppose the information in the following table is for a simple economy that produces only the…

A: Here, it is given that the base year is 2012 and the price and quantity of different goods and…

Q: 4 True or false? Be sure to explain your answer in detail. Suppose the utility function u(x1, x2) =…

A: Introduction We have given a utility function. Two different utility function can represent same…

Q: Explain why does the government act as a producer of health insurance for certain population group?

A: Health care/insurance coverage is a kind of protection that covers clinical costs that emerge…

Q: Suppose a country surveys households and finds that 140 million people can be classified as being…

A: The unemployment rate is the level of the labour force without a task. It is a reactive result,…

Q: Consider following regressions: Y = a₁ + a₂X+U Y* =b₁ + b₂X* + V Where: Y = mY, X* =nX D Show that:…

A: Y = a1 + a2 X + U_____________[1] After scaling, regression: Y* = b1 + b2 X* + V mY = b1 + b2 (nX) +…

Q: Suppose the demand for chocolate bars is downward sloping. Which of the following will occur as a…

A: Downward sloping demand curve implies the inverse relationship between price and quantity demanded.

Q: Irfan has the budget constraint described in the graph below. If Irfan purchases 1 hour of tutoring…

A: A budget line shows all the combinations of the two goods that a consumer can buy given his budget…

Q: 1) The principle that "More is better" results in indifference curves A) not intersecting. B)…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: Explain why in case of a fixed exchange rate regime temporary and permanent fiscal policy changes do…

A: A fixed exchange rate, habitually called a fixed exchange rate, is a sort of exchange rate framework…

Q: A food manufacturer is trying to maximize profit by selling wheat-based cereal (C) and wheat…

A: In economics, According to A production function provides the technological relation between…

Q: Current account transactions are records of the incomes and expenditures from exports and imports,…

A: Current account records the export and import of goods and services, unilateral transfers in form…

Q: Under the kinked demand curve model, an increase in marginal cost will lead to: A. An…

A: Kinked demand curve makes the Marginal revenue curve discontinuous. thus, any change in the marginal…

Q: A manager's operation currently has an average sale per guest of $9.00. For the upcoming accounting…

A: A revenue forecast is an knowledgeable prediction or estimation for the approaching yr approximately…

Q: Individual retirement accounts (IRAS) were established by the U.S. government to encourage saving.…

A: A Savings account refers to the facility that banks give its customers where the customers deposit…

Q: hat is the amount produced, at the end of 5 years, by annual deposits of $2,000,000.00 at a rate of…

A: Constant annual deposit = 2000,000 Time = 5 years Interest rate = 6 % annually

Q: Which of the following goods is NOT scarce? Opublic libraries Ogarbage clean air in a big city…

A: Economic decisions are those decisions in which people will choose what to do with limited…

Q: According to the substitution effect of labor supply, when the wage rate goes up: O A. the…

A: Rather than the industry labor supply curve, the substitution effect is applicable to the individual…

Q: 5. Problems and Applications Q10 Consider the following table of long-run total costs for three…

A: When talking about economies of scale, it can be said that it is the situation when a producer is…

Q: You are given the following information about an economy. C=20+0.8(Y-T) 1=100 G=520 T=0.25Y and…

A: Equilibrium GDP is denoted to be as that level of the output whose certain level of the production…

Q: In a financial operation with a term of 23 days, simple interest is charged at a rate of 36% per…

A: We have 23 days = n =23 r = 36% per year P= principal amount is $120,000.00

Q: A monopolist faces a demand with constant elasticity of -2.0.It has a constant marginal cost of R20…

A: Introduction We have given a demand function of a monopolist. Since monopolist is the sole seller,…

Q: Why is it important to create a budget and to manage your cash flow?

A: Budget is an estimation of revenue of expenses over a specific future period.

Q: What is BAFTA and CEFTA and what was their ultimate aim

A: The British Academy of Film and Television Arts (BAFTA) is a prominent independent arts foundation…

Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…

A: At the market place, the price elasticity of demand and supply is influenced by various factors like…

Q: Suppose that the market for black sweaters is a competitive market. The following graph shows the…

A: Answer: According to the above figure if the market price is $15 the equilibrium occurs at point E.…

Q: Determine the level of Q that maximizes total revenue. Determine the level of Q that minimizes the…

A: Given Demand equation faced by the manufacturer P=10-0.0004Q .... (1) Total cost TC…

Q: Using the NPV as key indicator for the success of a major organisational change project in a company…

A: The total of the Present Values of all future Cash Inflows minus the sum of the Present Values of…

Q: According to the efficient market theory, prices of actively traded stocks can be under- or…

A: Stocks are the financial instruments that firms or organizations raise and sell to the investors in…

Q: Assume the velocity of money and real gross domestic product are constant. According to the quantity…

A: Quantity theory of money :

Q: Which of the following measures is conceptually the same as price? A) Marginal revenue. B)…

A: Marginal Revenue is the additional revenue earned by the selling one more unit of output. Average…

Q: If you make $83200 in Alaska, how much would you need to make in Arkansas to keep the same standard…

A: Real income which means how many goods can be bought with given level of income . If we want to…

Q: surplus imply the economic growth is strong? Please between level of GDP and Net capital outflow.

A: A trade deficit happens when a nation imports more than it sends out. Otherwise called a negative…

Q: Who ensures that property rights are protected and enforced? O the property owners the banking…

A: Property rights give the owner legal rights that the property is of owner and no one can take it…

Q: Janelle spends all of her income on songs from iTunes ($1 each) and apps ($5 each) for her iPhone.…

A: Real Income When referring to an individual's income, real revenue is the money earned after…

Q: Consider the following table of long-run total costs for three different firms: Quantity 1 2 3 4 5 6…

A: Economies of scale refers to the decrease in the avergae cost of production when the firm increases…

Q: Calculate the amount of simple interest and the amount for: a)$40,000 at 36% per year in 3 years and…

A: To calculate the Simple interest we need to solve for separate time periods . We need to solve for…

Q: True/False and Explain. Evaluate whether the following statement is true or false and explain why.…

A: Monetary policy refers to the name given to the macroeconomic stance taken by the central bank.It is…

Q: The expenses and income of an individual are given in table form to the right. Find the net monthly…

A: Net Cash flows alludes to the contrast between the cash Inflows and cash outflows, So, the pay is…

Q: country that faces a huge crisis of malnutrition. A recent study has alerted wealthy nations to the…

A: *Answer: * Option d. Liberia is facing a balance of payments deficit is the correct answer.

Q: 2. Let the production function be as follow: q(L,K) = 10.7 K0.3 Also assume w=2 and r=4 a. Find out…

A: Production costs allude to the costs an organization causes from assembling an item or offering a…

Q: SuuLLure is defined as having no barriers. meaning firms can freely enter and exit based on profit…

A: A firm produces at the output level where MC equals MR in order to maximize profit.

Q: What is Term of Trade? Why the Terms of Trade in low and developing countries are normally low as…

A: The terms of exchange is the overall cost of products concerning imports and is characterized as the…

Q: How much will a person get when redeeming a bond worth $1,200,000.00 today that will mature in three…

A: Present worth of bond = 1200,000 $ Time = 3 months Bank charges = 4 % per month

Q: Would you consider your demand for gas to be relatively elastic or inelastic? What changes do you…

A: Price elasticity measures the responsiveness of demand to changes in price. Elastic demand is…

Q: • The inverse demand function is given by P = a-bQ, with a, b>0; • The monopolist's cost structure…

A: Given Inverse demand function: P=a-bQ a, b>0 .... (1) The total cost of the monopolist…

Q: What does it mean to say that a bond has a value less than one for its relative yield differential?…

A: Bonds A bond is a fixed-income asset that symbolizes an investor's debt to a borrower, who is…

Question

What do a firm's opportunity costs of production amount to?

Question 13 options:

	explicit costs, implicit costs, and total revenue combined
	implicit costs only
	explicit costs and implicit costs combined
	explicit costs only

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Concert Opportunity Cost 2 You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert?
Q)What type of cost is the tuition paid for college credit after the census date when a refund is no longer possible? Marginal Cost Opportunity Cost Sunk Cost Total Cost
14) Implicit costs can be defined as A) accounting profit minus explicit cost. B) the non-monetary opportunity cost of using the firm's own resources. C) total cost minus fixed costs. D) the deferred cost of production.
Table 4-1 below sets out cost information to produce volleyballs. Some values are missing. Which of the following statements is correct? Variable Cost Fixed Cost Total Cost Average Variable Cost Marginal Cost ($ ($ per unit) Quantity per unit) 0 0 30 30 0 1 12 B 12 E 2 25 C D F 3 A 72 14 G OA=42; E = 40 OA=70; E = 40 A = 42, E = 12 A=70; E = 12
Joe quits his computer programming job, where he was earning a salary of $70,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $20,000 per year. In his first year of business he has the following expenses: salary paid to himself, $45,000; rent, $0; and other expenses, $40,000. Find the accounting cost and the economic cost associated with Joe's computer software business. (Enter numeric responses using an integer.) The accounting cost of Joe's business is $ (Enter your response as an integer.) es Get more help Clear all Check answer
Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your marginal cost decreases by $4. There are no fixed costs, and the first unit costs you $66 to produce. Use the given information to fill in the marginal cost of each unit, as well as the total cost and average cost of each level of output. Quantity Marginal Cost Total Cost Average Cost (Units) ($) ($) ($/unit) 1 $66 $66 $66 2 3 4 5 6 Suppose you receive a request for proposal (RFP) on a project for four units. Your break-even price for four units is _________ Suppose that if you get the contract, you estimate that you can win another project for two more units. The break-even price for those next two units alone is ________ .
QUESTION 1: Calculate a plant's total cost for every day in the data, in dollars. Total cost is defined as: total_cost = total_raw_materials_cost + total_operating_cost + total_labor_cost. Which plant is the most expensive to operate, and what is the cost to operate the plant? QUESTION 2: Which cost source (or combination of sources) makes up the majority of a plants total expenditures? raw material, labor, operating, or no cost is consistently the majority of total cost across plants QUESTION 3: Calculate cost efficiency, defined as how much money is spent to produce 1 pound of release ease (i.e. total production/cost). Which plant is the least cost efficient, in lbs of release ease produced per dollar spent? What is the daily average efficiency for the plant that is most efficient? link to excel data:https://docs.google.com/spreadsheets/d/1PM9rh2DnEdKQqCjJM1cmVjcP7_YSdA0y/edit?usp=sharing&ouid=109691244462343090665&rtpof=true&sd=true
Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your marginal cost decreases by $8. There are no fixed costs, and the first unit costs you $64 to produce. Use the given information to fill in the marginal cost of each unit, as well as the total cost and average cost of each level of output. Quantity Marginal Cost Total Cost Average Cost (Units) ($) ($) ($/unit) 1 $64 $64 $64 2 3 4 5 6 Suppose you receive a request for proposal (RFP) on a project for three units. Your break-even price for three units is _____ ($) Suppose that if you get the contract, you estimate that you can win another project for two more units. The break-even price for those next two units alone is _____ ($)
You are planning to start a business. When calculating the costs. You have considered the costs of setting up your manufacturing plant, production, logistics, and all other costs except for the opportunity cost of your initial investment in this business. Which of the below is true? A) You calculated the economic cost. B) You calculated the explict costs. C) You calculated only the variable costs. D) You calculated only the fixed costs.
2. A student foregoes her annual summer job (paying in total $3,200) in order to operate a sandwich shop. Rent and other fixed costs are $1,500 for the entire season. Variable cost per sandwich is $0.50. a) What is the opportunity cost for the student? Explain. b) Derive the expressions for the total accounting cost and total economic cost. c) Suppose that the sandwich shop generates a positive total accounting profit of $2,000. Accounting for total economic costs, should the student operate the shop? Explain.