The Implicit Cost of Capital Is

question 113

Multiple Choice

The implicit cost of capital is:

• A)the explicit cost of capital that the firm might have used but didn't need to.
• B)depreciation.
• C)the opportunity cost of the capital used by a business.
• D)the cost of human capital.

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Definitions:

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and taxes.

Efficient

The optimal allocation of resources in a manner that maximizes output or outcomes without wasting any resources.

Social Goods

Goods that benefit all members of society and are often provided by the government, such as public parks and national defense.

Collective Benefits

Advantages or positive outcomes that are shared by a group, community, or society from actions or policies, rather than by an individual alone.