As of 12/27/14, www.inflateyourmind.com had more than 1.1 million page views and more than 253,000 unique visitors, including more than 109,000 from countries outside the United States. Among foreign countries, India had the highest number of unique visitors (16,848), followed by the Phillipines (8,691), the United Kingdom (7,339), Malaysia (6,771), Canada (6,486), Pakistan (5,403), Australia (5,320), and Singapore (4,055).
|Section 1: Explicit Costs and Implicit Costs|
|Microeconomics - Unit 5|
The Difference Between Explicit and Implicit Costs
What are the Explicit Costs and Implicit Costs of Attending College?
In addition, you estimate that your annual implicit costs are $30,000 because this is the money you could have earned had you not attended college. Your total annual cost of attending college is now $55,000 ($25,000 plus $30,000). Thus, your total cost of attending four years of college equals 4 times $55,000, or $220,000.
What are the Explicit and Implicit Costs of Operating a Business?
Problem: Let's say that you are running a business and incur the following monthly expenses: labor costs are $80,000; raw materials and business supplies are 30,000; equipment leasing expenses are $7,000; finance charges on loans are $3,000. You are not paying rent, because you own the building in which you operate the business. If you had rented it out, however, you would have received $12,000 in rent income. You also estimate the value of your own time to equal $40,000. What are your implicit, explicit, and economic costs?
Solution: Explicit costs are $80,000 + $30,000 + $3,000 +$7,000 = $120,000.
|Last Updated on Tuesday, 06 January 2015 18:36|