Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 5: For each of the costs listed below, identify whether it is an explicit or implicit cost to a rm. Which costs would be
Question 5: For each of the costs listed below, identify whether it is an explicit or implicit cost to a rm. Which costs would be subtracted 'om a rm's total revenue to calculate economic prot, and which to calculate accounting prot? a. hourly wages to the firm's employees b. depreciation of the nn's physical assets Depreciation of the rm '3 physical assets is an explicit cost. This cost would be subtracted from a rm '3 total revenue to calculate economic prot; this cost would also be subtracted from a rm '3 total revenue to calculate accounting prot. c. the risk-free 2 percent return the rm's owners could receive on their nancial capital instead of investing it in the rm (1. annual rental payments for a production facility
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started