What Are Opportunity Costs? How Do Explicit and Implicit Costs

question 135

Essay

What are opportunity costs? How do explicit and implicit costs relate to opportunity costs?

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Definitions:

Manufacturing Plant

A manufacturing plant is a large industrial facility where goods are produced through the combination of labor, machines, and processing of raw materials.

Certificate of Authority

A document issued by a state government granting a foreign business entity permission to conduct business in that state.

Foreign Corporation

A corporation that is registered and operates in a different jurisdiction from where it was originally incorporated.

Qualification Purposes

The specific reasons or objectives for requiring or seeking a particular certification, status, or level of skill.