An Example of an Explicit Cost of Production Would Be

question 5

Multiple Choice

An example of an explicit cost of production would be

• A)the cost of forgone labor earnings for an entrepreneur.
• B)the lost opportunity to invest in capital markets when the money is invested in one's business.
• C)lease payments for the land on which a firm's factory stands.
• D)Both a and c are correct.

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Definitions:

Liquidated Damages

A set amount of money that is required to be paid as compensation for not fulfilling contractual obligations.

Japanese Law

The legal system in Japan, which includes a combination of civil law, local customs, and a limited influence of common law.

Express Conditions

Specific requirements explicitly stated in a contract that must be met for contractual obligations to be fulfilled.

Conditioned On

Depending on a specific requirement or prerequisite being met.