BUECO5903 Business Economics – Global Homework Experts

Question 9:

order now

Indicate whether each of the following is an explicit cost or an implicit cost.

  1. (a)  Payments to Officeworks for stationery.

    Explicit cost (payment for materials)

  2. (b)  Interest forgone on funds an owner uses in their own company.

    Implicit cost (opportunity cost)

  3. (c)  A salary forgone by the owner of a firm by operating his or her own company.

    Implicit cost (opportunity cost)

  4. (d)  Income forgone while caring for young children.

    Implicit cost (opportunity cost)

  5. (e)  Workers compensation policy payments a company makes for its employees.

    Explicit cost (payment related to wages)

  6. (f)  A manager’s wages.

    Explicit cost (payment of wages)

References:

Layton, A., Robinson, T., & Tucker, I. B. (2019). Economics for today (6th Asia-Pacific ed.). South Melbourne, Australia: Cengage Learning Australia.

Sloman, J., & Norris, K. (2008). Principles of economics (2nd ed.). Sydney, Australia: Pearson Education.

CRICOS Provider No. 00103D 6