StudentShare solutions
Triangle menu

Economic concepts - Assignment Example

Not dowloaded yet

Extract of sample
Economic concepts

It is easy to identify, recognize and account for the explicit cost because these costs are documented in the company’s statement. Additionally, physical objects and money based transactions are usually involved in explicit costs (Arnold, 2008). Implicit cost: Implicit costs are also known as implied costs, economic costs, or notational costs. It is directly opposite to the explicit cost. Implicit costs are not actually exposed or accounted as costs. Implicit costs are commonly explained as opportunity costs or the loss of an opportunity in a specified time or condition. Implicit costs are usually related with the intangibles assets and often cannot be traced or documented. These costs include: waste of potential opportunities, wastage of time, and profit wastage. Implicit costs give up the potential paybacks and agreements in a certain transaction of business. Just place, an implicit cost is the loss of a potential profits or assets that did not come about (Gartner, 2009). QUESTION # 2 U shape cost curve: It is a representation of how the average cost for manufacturing a single unit changes over with the passage of time. The average cost of manufacturing per unit is high in the beginning and decreases as overall production increases. It is because of the fact that the same fixed cost is shared by more units or product. However, if the marginal cost of producing one more unit increases the overall cost again starts to increase because of the diminishing returns. Hence, when it is plotted on a chart, the cost curve seems like the letter U and for this reason is known as U shaped cost curve (Leamer, 2009). Long run cost curve: The long run cost curve is also called cost function in the microeconomic theory. It relates the cost of production to the amount of production and shows the implications of the long run decisions and proceedings on the cost of production of the company. The long run cost curve is the combination of several short run average cost curves and is generally U shaped because of the law of diminishing returns (Mankiw, 2009). Average cost curve: The average cost or unit cost is identified by dividing the total cost of production to total number of units produced in the company. An average cost can vary with passage of time with the increase or decrease in the cost of production. The average cost curve is also U shaped because of the fixed cost being shared by increasing products and at the same time marginal cost increasing because of the diminishing returns (Wessels, 2000). QUESTION # 3 Law of diminishing return: This concept of economics stating that, as the quantity of new input (workers, materials, etc.) increases, the marginal product of an added input at same position will be less than the marginal product of the preceding input. For example, consider a plant that uses manual workers to manufacture its items for consumption. If every other factors of production stay constant, at one stage each added worker will give less output then the preceding worker. When this stage is confronted then each extra worker will give less and less returns. If new workers are continuously added, the factory will in the end turn out to be so crowded that added workers in point of fact reduce the competence of the other workers, lessening the production of the plant. Another general example of law of diminishing returns is described as follow: If the population of the city increased then per capita income is decreased. And ...Show more

Summary

QUESTION # 1 Explicit cost: Explicit costs are costs that come about and are accounted in business documents. This cost is also known as direct costs of business or accounting costs. This cost occurs with an objective. In addition, usually the company and its profits have a direct impact of explicit costs…
Author : royalgutkowski
Economic concepts assignment essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Economic concepts assignment"
with a personal 20% discount.
Grab the best paper

Related Essays

Economic Assignment (Keynesian Economics)
John Maynard Keynes proved as to how an economy can sustain its adverse position of unemployment along with high inflation without intervention of the government. The reason for which government uses this theory for improving economic performance is the power of controlling supply of money within an economy.
3 pages (750 words) Assignment
Micro economic assignment
Analyze the impacts of increased demand for biofuels on the demand for and price of crops such as corn. Figure 1: Isoquant Isocost Analysis for the Production of Biofuels From other raw materials and plant matter, liquid fuels referred to as biofuels can be produced.
6 pages (1500 words) Assignment
Economic Concepts Assignment
The other alternative is to do a combination of both activities. The aim of this exercise is to determine who has the comparative advantage, meaning the one who has a lower opportunity cost of producing potatoes or raising chickens. In the end, one can see the relevance of specializing in an activity where one has the lower opportunity cost.
4 pages (1000 words) Assignment
Finance Concepts Assignment
Hence to be on the safe side the financial analysis is imperative. In this case the concepts of NPV and Payback are the indicators to be used to assess whether the business will carry good returns or not. “Net Present Value (NPV) is the excess of the present value (PV) of future cash inflows to be generated by the project over the amount of initial investment.” On the other hand “Payback period is the length of time it will take the company to recover its initial investment.” In this scenario e.g., if the initial investment is $15,000 and the annual after tax cash saving are $3000, then the payback period would equal 5 years.
4 pages (1000 words) Assignment
Economic Downturn Assignment
For this purpose the paper will quote information and facts from sources that speak of recession, depression, effects of financial crisis and explanation of the financial concepts mentioned above. It will then evaluate and arrive at a consensus regarding each of the financial aspects to provide a plan that will help the organization survive during a depression or recession and lead to a positive growth.
9 pages (2250 words) Assignment
Friedman Paragraph Graded Assignment
One of the reasons cited as causing the current economic crisis is the political inefficiency (4:03 – 9:10). Education plays a pivotal role in nurturing leaders with impeccable leadership skills
1 pages (250 words) Assignment
Problems in Economic Development's assignment
(b) Economic development is hard to measure because it is made up of several factors that cannot be easily quantified or expressed in monetary terms. For example changes in social behavior cannot
2 pages (500 words) Assignment
Problems in Economic Development 's assignment
c) Iron deficiency is very perplexing in the developing world because iron deficiency reduces the productivity level of people in the world while iodine deficiency causes mental retardation and brain damage. The solution for the iron deficiency is to take
2 pages (500 words) Assignment
Problems in Economic Development 's assignment
Hence, this may be caused by increase in population to spur economic growth. Developing countries experience this type of growth as they are
3 pages (750 words) Assignment
Writing assignment
WSJ online website will be the source of graphs essential for this analysis. Figure 1 above shows the sales of cars and light trucks in the U.S retail
1 pages (250 words) Assignment
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation