What Are Costs That Are Actually Paid Out in Money

question 64

Multiple Choice

What are costs that are actually paid out in money?

• A)Implicit costs.
• B)Explicit costs.
• C)Sunk costs.
• D)Short-run costs.

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Definitions:

Fair Market Value

The amount for which a property would be sold in an open market transaction, involving a ready seller and a ready buyer, both possessing adequate awareness of the pertinent details.

Recovery

The action of regaining possession or obtaining compensation for a loss.

Recognizance

A legal obligation, acknowledged before a court, where an individual promises to adhere to certain conditions without the need for posting bail.

Acknowledges

The act of recognizing or admitting the existence or truth of something, often formally in writing.