Explicit and implicit costs

Assignment Help Business Economics

Reference no: EM131094565

Explicit and Implicit Costs Amos McCoy is currently raising corn on his 100-acre farm and earning an accounring profit of $100 per acre. However, if he raised soybeans, he could earn $200 per acre. Is he currently earning an economic profit? Why or why not?

Reference no: EM131094565

Questions Cloud

An important employment level is called full employment : An important employment level is called full employment.

The investment demand curve in certain economy : Suppose that the investment demand curve in a certain economy is such that investment declines by $110 billion for every 1 percentage point increase in the real interest rate. Also, suppose that the investment demand curve shifts rightward by $170 bi..

What is the difference between fixed cost and variable cost : Marginal Cost What is the difference between fixed cost and variable cost? Does each type of cost affect short-run marginal cost? If yes, explain how catch affects marginal cost. If no, explain why each does or does not affect marginal cost.

Law of diminishing marginal returns : Law of Diminishing Marginal Returns As a farmer, you must decide how many times during the year to plant a new crop. Also, you must decide how far apart to space the plants. Will diminishing returns be a factor in your decision making? If so, how wil..

Explicit and implicit costs : Explicit and Implicit Costs Amos McCoy is currently raising corn on his 100-acre farm and earning an accounring profit of $100 per acre. However, if he raised soybeans, he could earn $200 per acre. Is he currently earning an economic profit? Why or w..

What are the equity implications of this difference : Oregon has an income tax but no state sales tax, while Washington has no state income tax but does have a state sales tax. Oregon residents can deduct the state taxes they pay (the income tax payments) from their federal income taxes, while Washingto..

Purchase parking permit with pretax dollars : Your employer allows you to purchase a parking permit with “pretax dollars” – that is, you don’t have to pay taxes on the money that you used to purchase this permit. Does allowing some people to purchase certain goods or services using pretax dollar..

What is present value of after-tax net returns for system : Mr. Agirich of Aggie Farms must choose between two alternative machinery investment programs which will perform equally. The following information is available. What are the annual gross revenues from System A in the 5th year? What is the present val..

Calculate quantity supplied and quantity demanded : The market for a box of POG’s is defined by Qd=80-P and Qs=P. Calculate perfectly competitive equilibrium, consumer surplus, and producer surplus. Calculate quantity supplied, quantity demanded, and producer surplus, consumer surplus, and deadweight ..

User Account

All Pages