Explicit, implicit and economic costs

Related BrainMass Solutions

• Business and Economic profits

  Normal Return on Investment is the implicit costs i.e. $25000 The solution calculates implicit costs, explicit costs, economic profits and normal profits in the given case.

• Calculating the accounting and economic costs

  Total Implicit costs = Rent that could been earned = $800 Total economic costs = Total explicit costs + Total implicit costs = $800 + $800 = $1600 Total accounting costs = Total explicit costs = $800 Economic costs include the opportunity costs

• Calculating Implicit and Explicit Costs

  What are the total explicit, total implicit, and total economic costs in 2010? Explicit costs are costs for which actual payments are made.

• Comparison of Accounting & Economic Profits

  This means that an economic profit is computed by deducting all implicit and explicit costs of doing business from total revenues.

• Price elasticity of demad, determinants of elasticity

  A firm with total revenue of $125 million, explicit costs of $100 million, and implicit costs of $30 million Accounting Profit=Total Revenues - Explicit costs=125-100=$25 million Economic profit=Total Revenues-Explicit costs-Implicit costs=125-100-

• Calculating Accounting and Economic Profits - Sound Devices Inc.

  Solution describes the steps to calculate implicit cost, explicit cost, accounting profit and economic profit in the given case.

• Economic cost/accounting profit/economic profit

  are imputed costs and there is no monetary payment to these costs Salary foregone 175,000 Interest lost in investment (15%) 100,000X15% = 15,000 Total implicit costs $190,000 Total economic costs = implicit costs + explicit costs = 190,000+793,000

• Calculate the economic and accounting profit in the given case

  So, Explicit cost=wages and salary cost+interest paid+raw material cost+other payments Explicit cost=400000+10000+50000+20000=$480000 Implicit cost includes opportunity costs.

• Calculating accounting and economic profits

  Total Costs=Implicit costs+ Explicit costs=63000+87000=$150000 Total Revenue=$150000 Economic Profit=Total Revenue-Total Costs=150000-150000=0 He did not make any economic profit.