a.Carefully explain what is meant by explicit; implicit; and sunk costs. How are they used to...

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Economics

a.Carefully explain what is meant by explicit; implicit; andsunk costs. How are they used to calculate accounting profit andeconomic profit? [5 marks]
b. Explain the relationship between total product, marginalproduct, and average product. [3 marks]
c. Explain the difference between the short run and the longrun. [4 marks]
d. Why is the level of output at which marginal revenue equalsmarginal cost the profit maximizing output? [5 marks

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a Explicit costs Explicit costs are those that require monetary payments like rent salary repairs etc Implicit costs Implicit costs do not require actual monetary payments Implicit costs are opportunity costs Opportunity cost is the value of the next best alternative Examples of implicit costs are salary foregone rent foregone for owned premises if used for See Answer

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