Reference no: EM131094530
Why are costs important in economics?
Why don’t economists use the same cost data as accountants use?
What is the real cost of putting an unemployed laborer to work raking leaves or digging holes and refilling them during a severe recession? Explain.
How do firms incorporate opportunity costs to calculate economic costs? Discuss and give example using an explicit economic cost and an implicit economic cost.
Why is it important to distinguish between explicit and implicit costs?
Your firm has total sales revenue of $1,000,000 and total explicit costs of $600,000 and total implicit cost of $300,000. What will be the accounting profit for the firm? What will be the economic profit for the firm? Explain the difference using the data.
Why must normal profits be counted as a cost, according to economists?
Evaluate this statement: “If the economic profit is zero, a business will shut down.”
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Model with floating exchange rate
: IS-LM-FX Model with Floating Exchange Rate... For each of the following situations use the IS-LM-FX model to illustrate, first, the effects of the temporary shock, and then the policy response. (Note: Assume the central bank responds by using monetar..
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Labor-abundant country moves from autarky to trade
: Carefully explain why the following is either true or false. "In a 2*2*2 heckscher-olin context, when a relatively labor-abundant country moves from autarky to trade, the real return to capital in the import-competing industry decreases and the real ..
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Find subgame perfect nash equilibria by backward induction
: In the 1920’s, General Motors purchased its auto bodies from an independent firm, Fisher Body. GM decided to build a new plant and, in order to improve the reliability of supply and also to decrease shipping costs, GM asked Fisher Body to build a new..
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Product innovation charter
: Referring to text Chap 3 “ Product Innovation Charter”, explain what are the benefits of this up front charter document early on during the product development process ?? Also, explain your personal experience of the benefits you experienced from dev..
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Why are costs important in economics
: Why are costs important in economics? Why don’t economists use the same cost data as accountants use? What is the real cost of putting an unemployed laborer to work raking leaves or digging holes and refilling them during a severe recession? Explain.
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Describe how marginal utility and demand are related
: Why does a newspaper dispenser open to a stack of newspapers and essentially “trusts” a consumer to take just one copy whereas a soft drink vending machine does not “trust” consumers and dispenses one can for each purchase? Describe how marginal util..
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Explains this difference in fdi inflows into two countries
: In 2008, inward FDI accounted for some 63.7 percent of gross capital formation in Ireland, but only 4.1 percent in Japan (gross capital formation refers to investments in fixed assets such as factories, warehouses, and retail stores). What do you thi..
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How political ideology has shaped these attitudes
: What is the Cost Benefit of FDI? how political ideology has shaped these attitudes. please identify a cost and a benefit of FDI from the perspective of a home country. When answering this question, please select any home country of your choice exclud..
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What is difference between total utility-marginal utility
: Describe the law of diminishing marginal utility. On what assumptions is this law based? Use diminishing marginal utility to explain why millionaires often do not have many homes, even if they can afford it. Explain the three characteristics of utili..
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