--%>

What are differences between differential and explicit cost

What are the differences between differential cost and explicit cost?

E

Expert

Verified

Differential Cost:

This refers to the change in cost because of change in the level of activity or method of production or pattern of production.

Explicit Cost:

These costs are those costs that are really paid (or paid in cash.). all they are paid out costs.

   Related Questions in Managerial Economics

  • Q : Screening and Credentialism Critics of

    Critics of “credentialism” believe which firms making employment decisions tend to rely much heavily on: (1) personal contacts. (2) past experience. (3) personality testing. (4) job interviews. (5) formal training and education.

  • Q : Elasticity of demand for labor and type

    The relationship between the elasticity of demand for labor and the elasticity of demand for a specific type of output the labor produces is: (1) uniformly negative. (2) uniformly positive. (3) zero. (4) curvilinear. (5) highly variab

  • Q : Succeed and surviving of a cartels A

    A cartel is more likely to succeed and survive when: (w) members respond to incentives to cheat. (x) fringe producers are not members. (y) total market demand is less elastic. (z) close substitute goods are simply developed.

    Q : Cost concept of business operation and

    Categories the cost concept of business operation and decision making?

  • Q : Illustration of Screening Nick responds

    Nick responds “help wanted” that ads by making phone calls and scheduling interviews. If a prospective employer asks for a resume and queries Nick regarding his references and skills, in that case the firms are practicing an illustration of: (i) signaling.

  • Q : Concept of derived demand The concept

    The concept of derived demand means that: (w) consumer demands for goods depend on the utilities received from their use. (x) firms’ demands for resources depend upon consumer demands for the goods produced. (y) governmental demands for social g

  • Q : Recovery - Phases of business cycle

    Explain about the term Recovery in phases of business cycle.

  • Q : Relation between Average Revenue

    Illustrates the relation between Average Revenue, Total Revenue and Marginal Revenue?

  • Q : Illustrates fundamental characters of

    Illustrates the fundamental characters of human existence given by Lionel Robbins?

  • Q : Physical Productivity of labor Labor’s

    Labor’s physical productivity based most directly on technology and the: (w) tastes and preferences of consumers. (x) transactions demand for money. (y) prices and availability of the other resources. (z) level of per capita income.