This topic contains a solution. Click here to go to the answer

Author Question: What are the items that make opportunity cost differ from the accountant's measure of cost? What ... (Read 111 times)

notis

  • Hero Member
  • *****
  • Posts: 596
What are the items that make opportunity cost differ from the accountant's measure of cost?
 
  What will be an ideal response?

Question 2

Health insurance companies impose deductibles on policies and co-payments on claims
 
  A) to reduce moral hazard problems. B) to increase prices.
  C) to increase sales. D) to reduces sunk costs.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ebonylittles

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

A firm's opportunity cost includes the cost of using resources bought in the market, owned by the firm and supplied by the firm's owner. Economists and accountants both include the price of resources bought in the market as costs. But accountants omit costs included by economists. For instance, use of a building the owner has already purchased has an opportunity cost that accountants do not include. Additionally the normal profit, interest foregone, and economic depreciation are other opportunity costs not recorded by an accountant.

Answer to Question 2

A





 

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

For a complete list of videos, visit our video library