Professional Documents
Culture Documents
Economic Cost of Using ResourcesOpportunity Cost The Opportunity Cost of using any kind of resource is what the owners of a business must give up to use the resource.
This is what you have already seen about Opportunity Cost
When you have more than one resource and have to choose one, the others have to be left out. Choice involves sacrifice. Opportunity Cost is the cost of an item measured in terms of the alternatives foregone. EFM Faculty P.Uday Shankar 14/09/11
Total Economic Cost of resources used in production by a firm is the sum of Market Supplied Resources and Owner Supplied Resources.
The opportunity cost of market supplied resources is in terms of money paid out and is called Explicit Cost. Explicit Cost is the monetary opportunity cost of using market supplied resources. The opportunity cost of owner supplied resources is the best return the owners of the firm could have received had they taken their resource to the market instead of using it themselves and is called Implicit Cost. EFM Faculty P.Uday Shankar 14/09/11 Implicit Cost is the non-monetary cost of using owner
14/09/11
Profits
Discussion on : Triple Bottom Line concept of Profit, Planet and People. Profits and sustainable development- should nonprofits in business make profits? How should it be accounted? Tax implications.
7 EFM Faculty P.Uday Shankar 14/09/11
Thanks
14/09/11