Asked by Tatiana Cortes on Jul 04, 2024
Verified
Expenses associated with factors of production may be _____ costs.
A) implicit
B) opportunity
C) explicit
D) implicit,opportunity,or explicit
Implicit Costs
The opportunity costs of using resources owned by the firm for its own operations, without direct payment but with foregone opportunities.
Explicit Costs
Direct, out-of-pocket payments for wages, rent, and materials, among others, involved in the production of goods or services.
Opportunity Costs
The cost of forgoing the next best alternative when making a decision or choice.
- Comprehend the distinctions between explicit and implicit expenses.
- Gain insight into the idea of opportunity cost and its impact on decision-making in economics.
- Identify the types of costs associated with running a business or pursuing education.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
D
Explanation :
Expenses associated with factors of production can be implicit (not directly paid out, such as the opportunity cost of using one's own resources), opportunity (the cost of foregone alternatives), or explicit (directly paid out, such as wages or rent).
Learning Objectives
- Comprehend the distinctions between explicit and implicit expenses.
- Gain insight into the idea of opportunity cost and its impact on decision-making in economics.
- Identify the types of costs associated with running a business or pursuing education.