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2 years ago

Explain and give an example the difference between an explicit cost and an implicit cost.

Business

1 answer:

Amanda [17]2 years ago

7 0

Answer:

Explicit costs are out-of-pocket costs for a firm

for example, payments for wages and salaries, rent, or materials. Implicit costs are the opportunity cost of resources already owned by the firm and used in business

for example, expanding a factory onto land already owned.

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A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size.

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3 years ago

When you purchase an item in a store, you may be charged __________.

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3 years ago

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What was the only thing Amazon sold when it first opened 25 years ago

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Amazon was originally an online bookstore

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2 years ago

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Which of the following decisions cannot be made at the margin?

PilotLPTM [1.2K]

D.) Whether to order a pepperoni or a cheese pizza is a decision that cannot be made at the margin.

Making decisions at a margin is merely considering an option on top of your made decision. Cost and Benefit is a factor in thinking in a margin.

You have already decided to move. Your marginal decision is whether to move to Boston from Chicago,

You have already decided to spend the day on Saturday. Your marginal decision is whether to watch a movie or go hiking.

You have already decided to have a two-week vacation. Your marginal decision is whether to spend it on the shore or in town.

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3 years ago

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Your father is now planning to retire, and his employer has promised him a guaranteed, but fixed, income of $50,000 per year for

ohaa [14]

Answer:

Explanation:

You need to use the Inflation-Adjusted Return formula:

$InflationAdjustedReturn=\frac{1+return}{1+inflationrate}-1$

So, basically you need to calculate it year by year. You can use excel, or an online calculator. I will attached you a link where you can find a good one. But this would be the process

$InflationAdjusted ReturnYear1=\frac{1+return}{1+inflationrate}-1=\frac{1+50000}{1+0.05}-1=47,619$

$InflationAdjusted ReturnYear2=\frac{1+returnyear1}{1+inflationrate}-1=\frac{1+47,619}{1+0.05}-1=45,351$

$InflationAdjusted ReturnYear3=\frac{1+returnyear2}{1+inflationrate}-1=\frac{1+45,351}{1+0.05}-1=43,192$

And so on...

$InflationAdjusted ReturnYear20=\frac{1+returnyear19}{1+inflationrate}-1=\frac{1+19,787}{1+0.05}-1=18,844$

Keep in mind that I did not write all decimals. You need to consider them if you want an exact answer

Online calculator:

https://www.ameriprise.com/research-market-insights/financial-calculators/savings-taxes-inflation/

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3 years ago