Which of the Following Would Be Considered an Implicit Cost

question 67

Multiple Choice

Which of the following would be considered an implicit cost?

• A) Health insurance of employees paid for by the firm
• B) The water bill of the firm
• C) The salaries paid to the managers of the firm
• D) Foregone rent on assets owned by the firm

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Definitions:

Dividend Growth Rate

The annual pace at which a company boosts its dividend payouts to shareholders.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Required Return

The minimum expected return by investors for investing in a particular asset, considering the risk involved.

Price Appreciation

An increase in the value of an asset over time, not accounting for dividends or interest.