A Cost That Is Incurred When an Actual Monetary Payment

question 48

Multiple Choice

A cost that is incurred when an actual monetary payment is made is a(n) __________ cost.

• A)explicit
• B)implicit
• C)positive
• D)expressed

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded; also known as market-clearing price.

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services available matches the amount that is demanded.