Friday, February 14, 2020

Explicit and Implicit Costs on Firms in an Efficient Informational Essay

Explicit and Implicit Costs on Firms in an Efficient Informational Environment - Essay Example Implicit costs are costs that are not directly paid for but measured in units of money. These costs are the costs of non purchased inputs which are not purchased in a market transaction but they have cash value. Implicit costs occur when a firm uses its capital, inventories or owner's resources. Goodwill is also a good example of implicit cost. The term of efficiency assumes an informational dimension here, which refers to productive efficiency that it high lights the development of informationally efficient finncial markets.In fact, these markets not only consist of the usual attributes of financial market- notably a large number of investors who have a interst of effective access in to the rich necessary information, but also the important additional assets that have ending points of well defined certain value. It is the most important question faced by economists todays to what extent firms incorporate their environmental information for achieving market efficiency. In this era of Information Technology, information is the key factor to evaluate a firm's stock price as well as its ultimate value.Investors, customers and all other stakeholders need all necessary information to take proper decision regarding investment, trading etc.So a firm should decide to disclose proper information to reach its ultimate goal. Part 02: Measuring a Firm's costs and its goal of Profit Maximization Measuring A Firm's Costs (Opportunity Costs): Economists consider the opportunity costs of all resources of a firm to calculate its costs whether they are paid or not. Opportunity cost is of any action is the highest valued alternative foregone. Opportunity cost of a firm is the value of the firm's best alternative use of resources. Opportunity costs includes both explicit and implicit costs, and it is known as economic cost which is our concern. So economic cost indicates to the value of all resources used to produce a good or service, whether the resources are paid or unpaid. Economic cost = Opportunity Cost= Explicit cost + Implicit Cost = Total cost of a Firm. We have discussed in the introductory part about explicit and implicit costs. Explicit cost is directly paid in money whereas implicit cost is the value of resources used even when no direct monetary payments are made to these resources. Implicit cost is incurred when a firm gives up an alternative action. For example, when a firm uses its own capital, and/or uses its' owner's resources, implicit costs are incurred. So there are two main aspects of a firm's implicit cost: i)The cost of a firm's own capital: If a firm

Saturday, February 1, 2020

Social Media Marketing Essay Example | Topics and Well Written Essays - 1250 words

Social Media Marketing - Essay Example According to the report findings  the measurement of social media has been stated to relate to the actuality of trailing the diverse and assorted content associated with the various types of social media on the whole. This particular process is observed to be carried out for ascertaining the specific quantity and attitude and reaction with regard to a particular brand in terms of the social media by the concerned marketers. Social media is being increasingly considered to be a popular form of marketing platform for the marketers owing to which the facet of measurement is considered to be quite a decisive constituent for the purpose of attaining success.From the essay it is clear that  the process of web analytics not only entailed the function of a measuring instrument in order to ascertain the web traffic but was also used for the purpose of business as well as market research. This stated measurement technique also aided in evaluating along with enhancing the efficacy of a defi nite web site. The web analytics were known to involve two groups and they were the off-site as well as the on-site. However, it needs to be mentioned in this regard that the advanced measurement tools in relation to the social media are believed to incorporate the two groups with regard to web analytics into tools that have been found to satisfy the functions related to both the groups.  The present measurement tools are known to provide a qualitative insight regarding the thinking, sentiment, behavior and demographics of the viewers.