Examples of implicit costs in the following topics:
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- Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs; accounting profit consists of revenue minus explicit costs.
- The biggest difference between accounting and economic profit is that economic profit reflects explicit and implicit costs, while accounting profit considers only explicit costs.
- In contrast, implicit costs are the opportunity costs of factors of production that a producer already owns.
- The implicit cost is what the firm must give up in order to use its resources; in other words, an implicit cost is any cost that results from using an asset instead of renting, selling, or lending it.
- Economic profit is the difference between total monetary revenue and total costs, but total costs include both explicit and implicit costs.
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- The opportunity costs associated with any activity may be explicit, out of pocket, expenditures made in monetary units or implicit costs that involve sacrifice that is not measured in monetary terms.
- It is often the job of economists and accountants to estimate implicit costs and express them in monetary terms.
- In economics both implicit and explicit opportunity costs are considered in decision making.
- A "normal profit" is an example of an implicit cost of engaging in a business activity.
- An implied wage to an owner-operator is an implicit opportunity cost that should be included in any economic analysis.
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- Opportunity cost refers to the value lost when a choice is made between two mutually exclusive options.
- Opportunity cost is the cost of any activity measured in terms of the value of the next best alternative forgone (that is not chosen).
- Thus, opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure or any other benefit that provides utility are also considered implicit. or opportunity, costs.
- The opportunity cost of having happier children could therefore be a remodeled bathroom.
- However, there are possible implicit benefits, such as autonomy and freedom to be "your own boss", and implicit costs, such as the stress of running your own business.
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- In the case of eminent domain, there are costs (opportunity costs) to the authority that defines and enforces the transfer of ownership of goods (property rights).
- Individuals who are affected by eminent domain incur costs as well.
- There are also costs of using exchange.
- The costs of using exchange are referred to as "transaction costs" (see Coase, "Nature of the Firm," 1937).
- It should be noted that these human creations might be intentional and explicit or unintentional and implicit.
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- Implicit differentiation makes use of the chain rule to differentiate implicitly defined functions.
- For most implicit functions, there is no formula which defines them explicitly.
- Implicit differentiation makes use of the chain rule to differentiate implicitly defined functions.
- An implicit function doesn't tell you exactly what $y$ is but still relates $y$ to $x$.
- The path of a point on a circle can only be expressed as an implicit function.
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- "Compliance" refers to a response, specifically a submission, made in reaction to an implicit or explicit request.
- The request may be explicit (directly stated) or implicit (subtly implied); the target may or may not recognize that he or she is being urged to act in a particular way.
- Low-balling gains compliance by offering the subject something at a low initial cost.
- The cost may be monetary, time related, or anything else that requires something from the individual.
- After the subject agrees to the initial cost, the requester increases the cost at the last moment.
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- If we decide what to say by projecting the costs and benefits of alternative communications S, truth and candor can easily get lost in the shuffle in the interest of expediency.
- The special importance of the act of communicating in human life is implicit in the history of the struggle for freedom of speech.
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- The payback period is considered a method of analysis with serious limitations and qualifications for its use, because it does not account for the time value of money, risk, financing, or other important considerations, such as the opportunity cost.
- While the time value of money can be rectified by applying a weighted average cost of capital discount, it is generally agreed that this tool for investment decisions should not be used in isolation.
- An implicit assumption in the use of payback period is that returns to the investment continue after the payback period.
- Payback is the amount of time it takes to return an initial investment; however, it does not account for the time value of money, risk, financing, or other important considerations, such as the opportunity cost.
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- The premises implicit in this orientation include:
- The main task of an organization utilizing the product orientation approach is to continue improving quality and reducing costs as key factors in the fight to maintain and attract customers.
- Adopting the product orientation can be advantageous to a company, due to the fact that the cost of determining consumer preferences and the development of new products and services are minimized or eliminated because consumers are in some way captive.
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- The payback method is considered a method of analysis with serious limitations and qualifications for its use, because it does not account for the time value of money, risk, financing or other important considerations, such as opportunity cost.
- While the time value of money can be rectified by applying a weighted average cost of capital discount, it is generally agreed that this tool for investment decisions should not be used in isolation.
- An implicit assumption in the use of the payback method is that returns to the investment continue after the payback period.