Describe the Formal and Informal Powers Generally Held by Governors

question 6

Essay

Describe the formal and informal powers generally held by governors. Discuss which of the powers in general (informal vs. formal)are the most important for a successful governor.

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Definitions:

Implicit Costs

The opportunity costs of resources that are owned by the firm and used in production, not involving direct payment of money but affecting the firm's profitability.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.

Accounting Profits

The net earnings of a company as calculated by subtracting total expenses from gross revenue, according to accepted accounting principles.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, reflecting the financial gain exceeding the opportunity cost of resources used.