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A person from your sorority calls and asks you to bake cookies for a bake sale to raise money for a local charity. You agree, but an hour later she calls you back and says that they have enough bakers; they need you to work at the bake sale for four hours. You agree, and as you hang up the phone, you think back to your psychology textbook and suddenly realize that you have been victimized by the __________ technique.
Implicit Costs
Non-direct payments or out-of-pocket costs, representing the opportunity costs of using resources owned by the firm for its own use.
Explicit Costs
Payments made directly to individuals or entities for business operations, including salaries, leasing costs, and supplies.
Implicit Costs
The opportunity costs of using resources that a firm already owns, rather than the expenses directly paid out.
Explicit Costs
Direct, out-of-pocket expenses incurred by a firm or individual for business operations or activities.
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