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 115 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?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...

For a complete list of videos, visit our video library