Implicit Costs Are Measured by

question 341

Multiple Choice

Implicit costs are measured by

• A) the value of the next-best alternative uses of inputs.
• B) actual expenses paid by a firm.
• C) total revenues minus total costs.
• D) the lowest value of all alternative uses of inputs.

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Definitions:

Accounts Receivable

Funds that are due to a company by customers who have purchased goods or services on credit.

Temporary Investments

Short-term financial assets that can be easily converted into cash, typically within a year.