The Opportunity Costs Associated with the Use of Resources Owned

question 204

Multiple Choice

The opportunity costs associated with the use of resources owned by a firm are usually

• A) externalities.
• B) implicit costs.
• C) explicit costs.
• D) sunk costs.

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Definitions:

Valuation Rate

A rate used to estimate the current value of assets or liabilities for purposes of financial reporting or appraisal.

Market Value

The prevailing rate at which a good or service is available for purchase or sale on the open market.

Market Value

The present rate at which one can buy or sell an asset or service on the open market.

Property Taxes

Taxes assessed on real estate by the local government, calculated as a percentage of the property's value.