--%>

Define the term full cost concept

Define the term full cost concept.

E

Expert

Verified

The concept of full costs comprises business costs, normal profits and opportunity costs. The opportunity cost comprises the expected earnings by the second best utilization of the resources or the market rate of interest upon the total money capital and as well the value of the entrepreneurs own services that are not charged for current business. So, normal profit is an essential minimum earning additionally to the opportunity cost that a firm should get to stay in its present occupation.

   Related Questions in Managerial Economics

  • Q : Differences between Sunk Cost and

    Illustrates the differences between Sunk Cost and Incremental cost?

  • Q : Hiring more labor in profit maximization

    When a firm hires an additional worker who adds $100 worth of output daily, and adds $50 daily to the firm’s costs, in that case the firm must: (w) hire more labor. (x) hire less labor. (y) not change its employment of labor. (z) sell off some o

  • Q : Lower Wages in Wage Differentials

    Compared to men along with similar amounts of education or experience, women onto average earn: (1) higher wages. (2) similar wages. (3) lower wages. (4) There is no general pattern. Can someone explain/help me with best solution a

  • Q : Explain the reasons for demand curve

    Explain the reasons for demand curve slopes downward.

  • Q : Value of marginal product and wage rate

    Profit maximizing competitive firms will competitively hire supplied labor up to that point where VMP is: (w) is at its maximum. (x) equals the wage rate. (y) minus MRP is minimized. (z) minus W is at its maximum.

  • Q : Define the term opportunity cost concept

    Define the term opportunity cost concept.

  • Q : Explain the cost concepts briefly

    Explain the cost concepts briefly.

  • Q : Define the inelastic demand Define the

    Define the inelastic demand.

  • Q : Price Taker in Labor Supply Curves

    When a firm is a price taker in the labor market, in that case the: (w) wage is constant for any quantity of labor this would hire. (x) marginal resource cost of labor is constant for any quantity of labor this would hire. (y) wage equals the marginal

  • Q : Occupational Crowding in Wage

    Disadvantaged groups have historically been pressured toward low wage jobs in a procedure termed as: (1) occupational crowding. (2) labor staggering. (3) systemic discrimination. (4) reverse favoritism. (5) nepotism.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1424498 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1954723
    Asked

    3,689

    Active Tutors

    1424498

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.