If a Firm Has Total Costs of $535,000 and Its

question 84

Multiple Choice

If a firm has total costs of $535,000 and its implicit costs are $165,000,how much are its explicit costs?

• A) $3,242
• B) $120,000
• C) $370,000
• D) $700,000
• E) $308

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Definitions:

Initial Margin

The upfront payment required to enter into a trading position as a guarantee against potential losses.

Maintenance Margin

The minimum account balance that an investor must maintain in a margin account after buying securities on credit, to protect brokers against deficits.

Private Placements

The sale of stocks, bonds, or securities directly to private investors rather than through a public offering in the capital markets.

Primary Security Offerings

The process by which new securities are issued and sold to investors, allowing companies or governments to raise capital.