Before answering the following questions, review the Assignment Checklist. Then,

Question

Before answering the following questions, review the Assignment Checklist. Then, in a separate Word document, write a 1-2 page expository research paper answer the following questions based on the rule for minimizing costs of production in regard to a small business plan to minimize costs in order to increase productivity and maximize profits: 1. Pat's Pizza Restaurant owner incurs various economic costs of production. Explain whether each of the following is an explicit cost or an implicit cost. Which of the two costs should Pat minimize to maximize his account profit? a) Payments for rented manufacturing equipment. b) A firm's use of a warehouse that it owns and could rent to another firm. Wages paid to the firm's workers. d) The wages the fim's owner could eam if he/she worked for another company.

Explanation / Answer

Answer:- Payment for rented manufacturing equipment:- Explicit cost

A firm's use of a warehouse that it owns and could rent t another firm:- Implicit cost

Wages paid to the firms workers:- Explicit cost

The wages the firm's owner cold earn if he/she worked for another compay:- implicit cost

The cost to minimize:- Wages paid to the firms workers and Payment for rented manufacturing equipment

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