Many firms have implicit and explicit costs. The difference between them is that implicit costs
a. are taken into consideration for tax purposes while explicit costs are not
b. are the same as explicit costs but are internalized within the firm, such as hiring labor
c. are part of accounting costs while explicit costs are not
d. represent actual money payments to factors of production while explicit costs do not
e. although not involving money payments are the opportunity costs of resources used by the firm
E
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Lulu purchased a security that promises to pay $50 twice a year from January 15, 2012 to January 15, 2016 and then pay $1,000 on January 15, 2016. The security is a debt to the company that issued it. The security is a
A) net investment to the company that issued it. B) share of stock. C) depreciating asset. D) physical capital. E) bond.
When less than the efficient amount of a good is produced, how does the marginal social benefit of the last unit produced compare to its marginal social cost?
What will be an ideal response?
Suppose there was a substantial increase in political instability in the rest of the world. What would be the effects on the U.S. current account? Explain
What will be an ideal response?
Utility measurements are:
A. a relative ranking of how much different people enjoy a particular good. B. used to compare one person's preference for a good to another person's preference. C. a relative ranking of the satisfaction a person gets from alternative combinations of things. D. None of these is true.