Explain the concepts of explicit costs and implicit costs

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Explain the concepts of explicit costs and implicit costs. Why do economists include implicit costs in their calculation of profits?

If monopolistically competitive firms have some control over the prices they charge, why do they experience zero economic profits in the long run? What does this mean for society as a whole in terms of costs to produce the product and resources allocation?

Explain why a firm maximizes its total profits by producing where MC = MR. To answer this question completely, you should explain why output levels greater than and less than the level where MC = MR do not maximize profits.

Reference no: EM131090313

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