1) Should economists use opportunity costs (Implicit costs) to understand the behavior of the firms as...

1) Should economists use opportunity costs (Implicit costs) to understand the behavior of the firms as well as the individuals? (100-125 words)

2) Does a perfectly competitive producer have any incentive to lower its price, so it is below the current market price? Explain your answer.

Expert Solution

I have attached herewith the answer to the question. The concept of opportunity has been explained with an example and other important points are also given on the basis of which we can evaluate the behaviour of firms as well as individuals.

Rahul Sunny answered 2 years ago

Please type an original answer. Implicit costs are defined by economists as nonmonetary opportunity costs. Why...

Please type an original answer. Implicit costs are defined by economists as nonmonetary opportunity costs. Why is it important for a firm to take these costs into consideration when evaluating a potential activity, when they don’t involve any monetary expense?

Unit 6 DQ1: Opportunity Costs Explain in detail: Implicit costs are defined by economists as nonmonetary...

Unit 6 DQ1: Opportunity Costs Explain in detail: Implicit costs are defined by economists as nonmonetary opportunity costs. Why is it important for a firm to take these costs into consideration when evaluating a potential activity, when they don’t involve any monetary expense?

Please type an original answer. Implicit costs are defined by economists as nonmonetary opportunity costs. Why...

Please type an original answer. Implicit costs are defined by economists as nonmonetary opportunity costs. Why is it important for a firm to take these costs into consideration when evaluating a potential activity, when they don’t involve any monetary expense?

1. Which of the following is an economic indicator that economists should use to understand the...

1. Which of the following is an economic indicator that economists should use to understand the state of the U.S economy? A. stock market trends over the past few months B. cost of housing C. the inflation rate 2. What is included in the GDP calculation of consumption? A. imported goods B. purchase of new manufacturing plant C. nondurable and durable goods 3. Labor productivity is A. the value of the production or output per worker. B. the production or...

What are the differences between implicit and explicit costs? Why do economists include implicit costs when...

What are the differences between implicit and explicit costs? Why do economists include implicit costs when determining economic profits? Do accountants include them? How can the inclusion of implicit costs help businesses and individuals select options that yield the greatest net benefits? Using the concept of implicit costs, explain how they affect the economic costs of attending college? Or starting your own business?

What are explicit and implicit costs, and how do they guide the behavior of the firm?...

What are explicit and implicit costs, and how do they guide the behavior of the firm? How does economic profit differ from accounting profit, and what role does it play? In your opinion should the firm base its decisions on accounting profit or upon economic profit?

Full paragraph (a) Why do economists look at implicit costs? (b) Look at two businesses (one...

Full paragraph (a) Why do economists look at implicit costs? (b) Look at two businesses (one big and one small) and for each identify what might be their implicit costs. Be specific! 1.What is the marginal product of labor (MP or MPP)? Why is the curve shaped the way it is? 2.Explain and describe each of the four production relationships.

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1) Should economists use opportunity costs (Implicit costs) to understand the behavior of the firms as...

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Please type an original answer. Implicit costs are defined by economists as nonmonetary opportunity costs. Why...

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