Explain the difference between explicit and implicit costs of production.

 

Use the “Supply and Production Costs,” worksheet and the economic concepts discussed in Chapters 6 and 7 of Economics of Health and Medical Care to answer the following questions. You will use the table found in the worksheet to calculate and fill in the blanks for the table in Question 5.

1. Explain the difference between explicit and implicit costs of production.
2. Explain the reasoning behind the U-shaped, long-run, average cost curve.
3. Explain the law of diminishing marginal returns.
4. Describe economies and diseconomies of scale.
5. Given the following data, calculate the total fixed, total variable, and marginal costs at each level of production.

APA style is not required, but solid academic writing is expected.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are not required to submit this assignment to LopesWrite.

Supply and Production Costs Comment by Chris Moore: “Supply and Production Costs” resource: There are two versions of this in the Documents folder, but they are the same. This one has a proper filename, but it looks like the other was the one you have worked on. Both of them have been edited, so I’d retain the one with the correct filename and delete the other.

Given the following data, calculate the total fixed total variable and marginal costs at each level of production.

Quantity	Total Cost	Total Fixed Cost	Total Variable Cost	Average Total Cost	Marginal Cost
0	$100
1			$20
2					$30
3			$100
4				$75

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