Costs Associated with Some Decisions by the Firm That Are

question 33

Multiple Choice

Costs associated with some decisions by the firm that are additional costs that a firm would incur if it took one course of action rather than another are called:

• A) incremental costs
• B) implicit costs
• C) fixed costs
• D) historical costs
• E) opportunity costs

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Definitions:

ERG Theory

A theory that organizes human needs into the categories of existence, relatedness, and growth.

Existence

The state or fact of living or having objective reality.

Relatedness

The need to feel connected to others, being a fundamental aspect of human motivation.

Lower-order Need

In Maslow's hierarchy of needs, refers to the basic physiological and safety needs that are fundamental for individual survival and security.