week 9 cost production

Question 1

explicit cost?

implicit cost?

Answer 1

is the cost outlay of cash of a business, eg: wages,

do not outlay cash, eg..employers time

Question 2

accounting profit

economic profit

Answer 2

accounting profit revenue minus explicit cost

economic profit revenue minus total cost(implicit ++ explicit cost)

Question 3

Production function

Answer 3

relates to the output and its determinant. it can be represented by table, graph or chart.

Question 4

Diminishing marginal product?

Answer 4

the diminishing of out as an increase in labor or increase in input.

Question 5

Marginal cost?

Answer 5

it is the incremental cost of what u want to increase

formula=change in total cost/change in total quantity