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Which of the Following Would Be an Example of an Implicit

question 540

Multiple Choice

Which of the following would be an example of an implicit cost?
(i) forgone investment opportunities
(ii) wages of workers
(iii) raw materials costs


Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash within a year.

Dutch Auction

A method of auction in which the price of the item is reduced until it meets a bid.

Shares

Portions of ownership in a corporation or financial asset.

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