1 the following terms a Explicit costs b Implicit costs c Ec

1. the following terms a. Explicit costs b. Implicit costs c. Economic depreciation d. Technological efficiency onomC 2. what you must do to achieve maximum profits: 3. the major constraints faced by firms 4 a. command systems and how they are used in business b. The Agency Problenm c. The line between Oigopoly, Monopolistic Competition, and Pure Competition d. how many markets you may work in e. the reaction of fims to change 5. the following terms a. market forces b. monitoring expenses restructuring of the table of organization c. d. pay restructuring fidelity bonds e. 6. the difference between a. sole proprietorship b. partnerships C. corporation

Solution

Answer 1 : Explicit costs - It is a direct payment made for running the business I.e direct wages, raw material etc.

B .Implicit cost - It is cost foregone by the person for running the business i.e jobs salaries, rent of the building in which business is running.

C. Economic depreciation - It is decreases in the value of the capital stock of the business in long run scanerio.

D.Technology efficiency - It means that firm are able to be technology efficient that they are producing output at lesser input.

E. Economic efficiency - It is the efficient level where the firm is able to earn maximum output with least input employed for production activity.

Answer 2. As a firm to achive maximum profit the firm should be :

Answer 3 : The major constraint of the firm are :

Answer 4 : Command system is the system in which there is proper planning and coordination of the activity to get best results from the response. It is used to business to achive best result.

B . Agency problem : It is a conflict of interest between one party in doing any activity with its best interest.