Implicit Costs Are ________ and Explicit Costs Are ________

question 4

Multiple Choice

Implicit costs are ________ and explicit costs are ________.

• A)nonmonetary costs; also nonmonetary costs
• B)nonmonetary costs; costs that involve spending money
• C)costs that involve spending money; nonmonetary costs
• D)costs that involve spending money; also costs that involve spending money

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Definitions:

Net Income

The amount a company earns after deducting every cost, expense, and tax from its total income.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or undervalued.

Market Price

The present rate at which a service or asset is being traded.

Net Income

The final amount of money a company makes after removing all operational costs, taxes, and additional expenses from the overall income.