In case the producer uses the inputs owned by him in production of final output then the cost incurred by him is called as
Answers
Explanation:
1. Explicit Cost
2. Implicit Cost
3. opportunity Cost
4. Imputed cost
Answer:
Explanation:
Privately owned firms are motivated to earn profits. Profit is the difference between revenues and costs.
Private enterprise is the ownership of businesses by private individuals.
Production is the process of combining inputs to produce outputs, ideally of a value greater than the value of the inputs.
Revenue is income from selling a firm’s product; defined as price times quantity sold.
Accounting profit is the total revenues minus explicit costs, including depreciation.
Economic profit is total revenues minus total costs—explicit plus implicit costs.
Explicit costs are out-of-pocket costs for a firm—for example, payments for wages and salaries, rent, or materials.
Implicit costs are a specific type of opportunity cost: the cost of resources already owned by the firm that could have been put to some other use. For example, an entrepreneur who owns a business could use her labor to earn income at a job.