When an Economist Uses the Term 'Cost' Referring to a Firm

question 37

Multiple Choice

When an economist uses the term 'cost' referring to a firm, the economist refers to the

• A) implicit cost of producing a good or service, but not the explicit cost of producing a good or service.
• B) explicit cost of producing a good or service, but not the implicit cost of producing a good or service.
• C) opportunity cost of producing a good or service, which includes both implicit and explicit cost.
• D) price of the good to the consumer.
• E) cost that can be actually verified and measured.

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Definitions:

Billions

A numerical value representing one thousand million (1,000,000,000) in the short scale numbering system, often used in the context of large quantities, such as population or financial transactions.

Risk Limitation

A strategy to reduce or control exposure to threats by implementing measures to limit potential damage.

Implementing Controls

The process of establishing and applying mechanisms to manage or regulate actions within an organization or system.

Threat

Anything that poses a potential danger to the integrity, confidentiality, or availability of information or resources.