To an individual firm,its costs represent
A) gross income to the firm resulting from its ownership of the means of production.
B) profits that accrue to those internally supplied inputs.
C) the payments to owners of resources needed to bid these resources from alternative uses.
D) the value of the assets used in the production process.
E) the monetary sum of the variety of alternatives open to its resources.

Question

Quizplus · Accepted Answer

Costs represent the payments made by the firm to the owners of resources needed to bid these resources from alternative uses. This includes payments for labor, capital, and other inputs necessary for the production process. Costs do not include gross income, profits, or the value of assets used in production. The monetary sum of alternatives open to resources is related to opportunity cost, not costs.

To an Individual Firm,its Costs Represent