Which of the Following Are Correct Statements About Implicit and Explicit

question 79

Multiple Choice

Which of the following are correct statements about implicit and explicit costs?
i.Normal profit is an implicit cost.
ii.Economic depreciation is an explicit cost.
iii.Wages are an explicit cost.

• A) ii and iii
• B) i and iii
• C) iii only
• D) i, ii, and iii
• E) i only

---

Definitions:

Unit

A single, distinct item or entity that is regarded as an individual complete system or component in a larger system.

Equilibrium Quantity

Equilibrium quantity is the quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Gallon

A unit of volume measurement in the U.S. customary units and the British imperial systems, used primarily for measuring liquids.

Gasoline

A fuel derived from petroleum, used primarily in internal combustion engines.