BEC 4 M4 Marginal Analysis

Question 1

Explicit Costs

Answer 1

Documented out-of-pocket costs

Question 2

Implicit Costs

Answer 2

Opportunity Costs

Question 3

Marginal Analysis Accounting Profit

Answer 3

total revenue-explicit costs

Question 4

Constraining Resource

Answer 4

Resource that limits production

Question 5

Min Price for special one-time orders are

Answer 5

the variable costs plus opportunity cost per unit, assuming excess capacity is available