Solved by verified expert :21)
Recall the Application. For many entrepreneurs, starting a new business means
leaving paid employment. The pay given up by the entrepreneur when starting a
new business is an example of ________ for that entrepreneur.
A)
an explicit cost
B)
an implicit cost
C)
both an explicit and an implicit cost
D)
neither an explicit cost nor an implicit cost
22)
Economic cost differs from accounting cost because accountants do not consider
implicit costs.
23)
Economic profit is total revenue less economic costs.
24)
Since all costs positive, then economic profits would always be smaller than
accounting profits.
25)
Economic cost is always less than accounting cost.
9
26)
Implicit cost is the opportunity cost of the inputs that do not require
monetary payment.
27)
The interest on a business loan is an implicit cost.
28)
What are the differences between economic cost and accounting costs?
29)
What is economic profit?
30)
What are the explicit and implicit cost?
