Discussion questions

Each question should be at least 150 word. Thanks

1.What is the difference between accounting costs and economic costs?

2.What are “Diseconomies of Scale”? Please explain the factors that cause these diseconomies, and why it’s important to know about them.

3.What are the differences between fixed and variable costs and among total, average, and marginal costs?

4.What is the difference between a market structure and a characteristic of market structure?

5.How can purely competitive firms use the total-revenue-total-cost approach to maximize profits or minimize losses in the short run?

6.What are the main characteristics of the four basic market models?

7.How does the long run differ from the short run in pure competition?

8.How do profits and losses drive the long-run adjustment process of pure competition?

Solution Preview

Accounting costs are costs that account for the explicit costs acquired while conducting a business and not the implicit costs. Explicit costs include direct costs that a company uses. These include employee wages, utility bills, costs of getting raw materials, employee wages just to name a few. These costs can be objectively confirmed since receipts are available. Accounting costs are only accounted for by accountants in a company’s financial statement,

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