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

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

---

Definitions:

Value Chain

The sequence of activities that a company performs to design, produce, market, deliver, and support its product, adding value at each step.

Consecutive Steps

Sequential steps or actions that follow one directly after the other without interruption or deviation.

Inputs

The resources, materials, or information that are required to produce goods or services in a business or manufacturing process.

Break-Even Point

The point at which total cost and total revenue are equal, meaning there is no net loss or gain, and the business starts to generate profit beyond this point.