Asked by
chevell parnell
on Nov 25, 2024
Verified
Which of the following would be an implicit cost for a firm? The cost
A) of worker wages and salaries for the firm.
B) paid for leasing a building for the firm.
C) paid for production supplies for the firm.
D) of wages forgone by the owner of the firm.
Implicit Cost
The opportunity cost equal to what a firm must give up in order to use resources that it already owns, without directly paying for them.
Leasing
A contractual arrangement where one party (the lessor) grants another party (the lessee) the right to use an asset for a specified period in return for regular payments.
Wages Forgone
The potential earnings that are lost or given up by choosing one alternative over another, often considered in decisions about education or training.
- Acquire an understanding of the impact of opportunity costs in relation to implicit costs.
Verified Answer
AG
Learning Objectives
- Acquire an understanding of the impact of opportunity costs in relation to implicit costs.