Explicit and Implicit Costs on Firms in an Efficient Informational Environment - Essay Example

Only on StudentShare

Extract of sample
Explicit and Implicit Costs on Firms in an Efficient Informational Environment

Implicit costs are costs that are not directly paid for but measured in units of money. These costs are the costs of non purchased inputs which are not purchased in a market transaction but they have cash value. Implicit costs occur when a firm uses its capital, inventories or owner's resources. Goodwill is also a good example of implicit cost.
The term of efficiency assumes an informational dimension here, which refers to productive efficiency that it high lights the development of informationally efficient finncial markets.In fact, these markets not only consist of the usual attributes of financial market- notably a large number of investors who have a interst of effective access in to the rich necessary information, but also the important additional assets that have ending points of well defined certain value. It is the most important question faced by economists todays to what extent firms incorporate their environmental information for achieving market efficiency. ...Show more

Summary

An Explicit cost is the familiar as money cost as it is paid directly in money. Explicit costs occur when a firm pays for its factors of production when it uses those for producing its products and services. So an Explicit cost is a business expense that is transparent that can be easily identified such as wage, rent and materials…
Author : pourosdarlene
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Explicit and Implicit Costs on Firms in an Efficient Informational Environment"
with a personal 20% discount.
Grab the best paper

Related Essays

Informational
Introduction: My name is Anna H. I recently shifted to the neighborhood. I live down the block on the fourth street with my husband and two year daughter. She goes to day care and I busy myself with brand promotions for a well known brand of cosmetics called Exotica.
3 pages (750 words) Essay
Research into Explicit Reading Strategy Training
Research into Explicit Reading Strategy Training (ERST) -- while demonstrating the importance of metacognitive pedagogical applications among second language learners -- shows statistical discrepancies in identifying exact levels of transferable validity. The researcher claims that the statistical analyses give more accurate and broader insight than a narrative form can can offer, yet a meta-analytic study into the efficiency of ERST used, "'only direct and indirect strategies'since social strategies have not been manipulated as independent variables in experimental L2 studies." (Taylor, A., Stevens, J.R.
1 pages (250 words) Essay
No informational Matters
Preparing a marketing plan for the product helps in the allocation of resources properly, making good decisions and handling of unseen or unexpected complications that may become hurdle in the future development of the business. One of the important aspects of marketing plan is that it provides organized information about the company and importantly a good business plan helps in attaining a loan application.
3 pages (750 words) Essay
Informational management
It is also informal because much f it has been and still is accumulated in an informal and often accidental way. Conversations, telephone calls, snippets from television, newspaper articles and so on. The sources f useful information are unlimited. (TUSHMAN 1978, 613-24; SCHNEIDER 1988, 143-53) The company grapevine is perhaps the best-known and most reliable informal information system.
8 pages (2000 words) Essay
To what extent, and in what respects, does Relevance Theory resolve problems surrounding the distinction between explicit and implicit communication?
It is the process by which information is correlated to known ideas. Relevance theory can be associated with perception and how the world is interpreted, revealing the natural balances of how existence is individually defined by experience. The
10 pages (2500 words) Essay
Summarizing an article titled "Explicit and Implicit Grammar Teaching Strategies: New Imperical Data. By Virginia M. Scott
The students grouped under the explicit teaching category heard rules and examples of a specific grammar structure and the students under the implicit
2 pages (500 words) Essay
In the light of recent examples of banks and companies making heavy losses from using derivatives, evaluate the risks and benefits of derivatives contracts.
Contrary, the recent press publication portrays derivatives as high risk and speculative investments. The public concern has prompted re-evaluation of the risk disclosure requirements by Securities and Exchange Commission of the mutual funds as well as to provoke the
7 pages (1750 words) Essay
Find out how much would it cost
to 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