Define the difference between accounting and economic cost
Define the difference between accounting and economic cost.
Expert
Difference in between Accounting Cost and Economic Cost are as follows:
Accounting cost implies the expenses incurred through the firm on production and sale of service or goods. Such are paid by the firm to the outsiders. For illustration, payment made for wages as raw materials, power, fuel and building and so forth are the accounting costs. For contractual payments accounting cost is the money paid. This includes payments and charges made through the enterprise to the suppliers of resources. This is the explicit cost.
But economic cost contains not only explicit cost but also imputed or implicit cost. Implicit cost contains rent charged upon owned premises, wages paid to entrepreneur and interest charged on owned capital. Implicit cost is not comprised in accounting cost. Accounting cost contains only explicit costs that are recorded inside the books of account. Implicit cost will not be recorded in the books of account. Therefore the economist’s concept of cost is more comprehensive like compared to accountant’s concept of cost.
The observations that whenever output is expanded, the costs ultimately grow faster than output, and that the enjoyment people receive from consuming additional units of a specific good ultimately declines, both pursue logically from the law of: (1) Unexpected effects
A society’s stock of human capital would be least probable to grow as a consequence of: (w) federal subsidies for college education. (x) sustained unemployment during a recession. (y) apprenticeship programs for construction workers. (z) retrain
The arc elasticity of Plastibristle’s demand for labor between point a and point b is: (1) 0.375. (2) 0.667. (3) 0.833. (4) 1.200 (5) 2.000. Q : Maximizes profit by hiring labor A firm A firm maximizes profit through hiring labor at the point where labor’s: (1) marginal physical product equals its average physical product. (2) marginal revenue product equals its marginal resource cost. (3) rate of exploitation is greatest. (4)
A firm maximizes profit through hiring labor at the point where labor’s: (1) marginal physical product equals its average physical product. (2) marginal revenue product equals its marginal resource cost. (3) rate of exploitation is greatest. (4)
When the wage rate paid for labor raises, in that case the: (1) supply of labor increases (2) opportunity cost of leisure rises. (3) workers always supply more labor. (4) level of national income increases. (5) opportunity cost of leisure falls.
When a firm does not influence the wage rate no matter how many workers this hires, then: (1) MRPL = MRCL for all feasible output levels for the firm. (2) MRCL = MPPL for all feasible output levels for the firm. (3) MPPL = MRPL for all feasible output
Job applicants make use of polished resumes explaining education, work experience and skills, accompanied from supportive letters of recommendation letters like tools in a process economist’s call: (1) adverse selection. (2) signaling. (3) human
Economy-extensive efficiency needs both allocative and technical efficiency within production and: (w) equity within the distribution of national income. (x) biological efficiency, in that people's basic desires should be met. (y) pol
Give a brief introduction of the term P/V ratio and Contribution?
Demand for labor of this purely competitive firm in given figure corresponds to: (1) line segment ab. (2) line segment bd. (3) line segment be (4) line segment df. (5) line segment dg. Discover Q & A Leading Solution Library Avail More Than 1419027 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1926501 Asked 3,689 Active Tutors 1419027 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
18,76,764
1926501 Asked
3,689
Active Tutors
1419027
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!