Q5, Write differences of the following (3 differences each) a, ISO-Quant and Indifference curve b, Stock and Supply c, Demand and Desired d, Implicit and Explicit cost e, Producer Surplus and Consumer surplus
Answers
Difference between ISO-Quant and Indifference curve are:
An isoquant shows equal level of product while an indifference curve shows equal level of satisfaction at all points. ... Firstly, an indifference curve represents satisfaction which cannot be measured in physical units. In the case of an isoquant the product can be measured in physical units.
Difference between stock and supply are :
Stock is the total quantity of goods available for sale with a seller at a particular point in time. Supply refers to the quantity of goods that a seller is able and willing to offer for sale at a particular price during a certain period of time. Stock is the outcome of production. Supply is derived out of stock.
Difference between Demand and desired are :
Desire simply refers to the mere wish of a person to have a particular commodity. Demand refers to a desire backed by the ability and willingness to pay for a particular commodity.
Difference between Implicit and explicit cost are:
The main difference between the two types of costs is that implicit costs are opportunity costs, while explicit costs are expenses paid with a company's own tangible assets. This makes implicit costs synonymous with imputed costs, while explicit costs are considered out-of-pocket expenses.
Difference between Producer surplus and Consumer surplus:
The consumer surplus refers to the difference between what a consumer is willing to pay and what they paid for a product. The producer surplus is the difference between the market price and the lowest price a producer is willing to accept to produce a good.