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:

Social Constructions

Concepts or perceptions of reality based on the collective views shaped by society and culture rather than inherent characteristics.

Method of Tenacity

A way of knowing or believing in something based on the stubborn adherence to a belief despite evidence to the contrary.

Fixing Belief

The process of establishing or settling on a particular belief or understanding based on reasoning, evidence, or persuasion.

Dichotomous Conclusions

Outcomes of analysis that divide data or results into two distinct categories or opposite parts.