If the interest rate is 10 percent and a business pays $100,000 for a lease on a factory, the explicit costs are

Name: If the interest rate is 10 percent and a business pays $100,000 for a lease on a factory, the explicit costs are
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Question

Quizplus · Accepted Answer

The explicit costs only include the actual monetary expenses incurred, which in this case is the $100,000 lease payment. The interest rate is not factored into the explicit costs. Therefore, the correct answer is C.

If the Interest Rate Is 10 Percent and a Business