Discussion question chap 9 Cost of Production Distinguish between explicit and implicit costs, giving examples of each.

• What are some explicit and implicit costs of attending college?

Distinguish between accounting profit, economic profit, and normal profit.

• Does accounting profit or economic profit determine how entrepreneurs allocate resources between different business ventures? Explain.

List several fixed and variable costs associated with owning and operating an automobile. Suppose you are considering whether to drive your car or fly about 2800 miles to New York on vacation.

• Which costsfixed, variable, or bothwould you take into account in making your decision? Would any implicit costs be relevant? Explain.