<span>Accounting profit is profit calculated using only the explicit costs incurred by the firm. Explicit costs are all costs that are considered to be out-of-pocket costs. These costs can include materials, salaries, rent and more. Implicit costs are opportunity costs to the firm of resources that are already owned by the company such as expanding the work building on land that has already been purchased.</span>
Answer: The total value created from the trade is $58
Explanation: The value created by me is $25 as I sold for $70 a bicycle worth $45 to me. That is $70 - $45 = $25.
On the otherhand, my friend created a value/gain of $33. He bought the bicycle for $70 but the worth to him is $103. That is, $103 - $70 = $33
In essence, the total value created will be the summation of the value created by me and that of my friend
That is, $25 + $33 = $58
<span>This is the process of decision-making. This is something considered by everyone from top-level managers down to the first-line employees. Decision-making effects the entire business and allows for the proper courses of action to be undertaken when a challenge is faced.</span>
