Here are the instructions:
- Review the narrated lecture on Business and the Cost of Production http://lectures.mhhe.com/
narrated_slides/0078021758/ chapter09/presentation_html5. html - Review the concept of Economic Profit in the textbook (picture of the section attached)
- Review the Khan Videos
http://www.khanacademy.org/
http://www.khanacademy.org/
ASSIGNMENT
1. Explain why economic costs include both explicit costs and implicit costs.
3. What other factors do you think the doctor may have considered when he decided to leave his profession to open a business?
Do not forget reference page with credible resources
Answer preview
The doctor may have considered leaving the job to be his own boss. By running his own business he has the capacity to make own decisions. He may also have considered building future prospects in the long run. The doctor weighed the potential of his income growth in the profession as much lower as would be in managing his own business in the long run (Read, Olivo & Hardisty, 2016). The doctor may also have considered the flexible nature of the business which is higher than in his profession where he would be expected to do the same activity over and over again. He considered that the business activities can be easily modified to take advantage of new opportunities
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