The difference between explicit costs and implicit costs
A) is that explicit costs are opportunity costs while implicit costs are not.
B) is that implicit costs are opportunity costs while explicit costs are not.
C) is that explicit costs are short-run costs and implicit costs are long-run costs.
D) is that explicit costs involve resources that are purchased and implicit costs involve resources the firm already owns.
D
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The balanced-budget multiplier is calculated as the government spending multiplier minus the tax multiplier
Indicate whether the statement is true or false
Everything else held constant, when the federal funds rate is ________ the interest rate paid on reserves, the quantity of reserves demanded rises when the federal funds rate ________
A) above, rises B) above, falls C) below, rises D) below, falls
Common property resources tend to be
A) overused. B) underused. C) not used at all. D) efficiently used. E) used by the government only.
Economic profit is the same as normal profit
Indicate whether the statement is true or false