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(Explicit and Implicit Costs) Determine whether each of the following is an explicit cost or an implicit cost

(Explicit and Implicit Costs) Determine whether each of the following is an explicit cost or an implicit cost
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Solution Guide / Answer Key:

ECONOMICS

MT445 / MT 445
Managerial Economics
Kaplan University (KU Campus)

William A. McEachern
Economics: A Contemporary Introduction, 8e
Hoboken, NJ: John Wiley & Sons.

Unit 3: Elasticity and Cost

Unit 3 Project
Chapter 7 – question 2, page 166
2. (Explicit and Implicit Costs) Determine whether each of the following is an explicit cost or an implicit cost:
a) Payments for labor purchased in the labor market
b) A firm’s use of a warehouse that it owns and could rent to another firm
c) Rent paid for the use of a warehouse not owned by the firm
d) The wages that owners could earn if they did not work for themselves

 

FILE: MS WORD

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