Which of the Following Is an Example of an Implicit

question 327

Multiple Choice

Which of the following is an example of an implicit cost?
(i) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm
(ii) interest paid on the firm's debt
(iii) rent paid by the firm to lease office space

• A)(ii) and (iii) only
• B)(i) and (iii) only
• C)(i) only
• D)(iii) only

---

Definitions:

Capital

Financial assets or resources that individuals, companies, or governments use to fund their operations and invest in their own long-term growth.

Marketable Securities

Financial instruments and assets that can be easily converted into cash without significant loss of value.