Which of the Following Is Most Likely to Be an Implicit

question 194

Multiple Choice

Which of the following is most likely to be an implicit cost of production?

• A) property taxes on a building owned by the firm
• B) transportation costs paid to a trucking supplier
• C) rental payments for a building utilized by the company and rented from another party
• D) interest income foregone on funds invested in the firm by the owners

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Definitions:

Mid-Ocean Ridges

Undersea mountain ranges where new oceanic crust is formed through volcanic activity and seafloor spreading.

Hot Springs

Natural springs that discharge water heated by geothermal processes from the Earth's interior.

Planet's Formation

The process by which a planet forms from the gas and dust surrounding a young star, typically through the accretion of material.

Comets

Celestial objects composed of ice and dust that, when passing close to the sun, develop a visible coma (or atmosphere) and sometimes a tail.