Which of the following is most likely to be an implicit cost for Company X?
A) Forgone rent from the building owned and used by Company X.
B) Rental payments on IBM equipment.
C) Payments for raw materials purchased from Company Y.
D) Transportation costs paid to a nearby trucking firm.
Correct Answer:
Verified
Q2: The following is cost information for the
Q4: Suppose that a business incurred implicit costs
Q10: The following is cost information for the
Q82: Normal profit is
A)determined by subtracting implicit costs
Q84: What do wages paid to factory workers,
Q86: Accounting profits are typically
A)greater than economic profits
Q93: Which of the following definitions is correct?
A)Accounting
Q97: Production costs to an economist
A)consist only of
Q99: An explicit cost is
A)omitted when accounting profits
Q100: Accounting profits equal total revenue minus
A)total explicit
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