An Implicit Cost Is Defined As

question 50

Multiple Choice

An implicit cost is defined as:

• A)the opportunity cost of using a resource that is not explicitly paid out by the firm.
• B)the difference between an input's explicit cost and its actual cost.
• C)the amount by which economic profit exceeds accounting profit.
• D)the amount by which the money spent on an input to production exceeds its opportunity cost.

---

Definitions:

Firing Cost

The expenses associated with terminating an employee, including severance pay, legal fees, and other related costs.

Yield Management

A variable pricing strategy based on understanding, anticipating, and influencing consumer behavior in order to maximize revenue or profits.

Capacity Allocation

The process of distributing available resources or capacity among various operations, processes, or production orders to maximize efficiency and meet demand.

Intermediate Future

A period that lies between the near future and the distant future, often used in the context of forecasting or planning over a few years to a decade.