Which of the Following Is Most Likely to Be an Implicit

question 119

Multiple Choice

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

• A) the "competitive rate" salary the owner of the business pays herself for services provided
• B) the property taxes on a building owned by the firm
• C) the rental income foregone because the business owns its building
• D) the interest paid on outstanding loans of the business

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Definitions:

Hypotheses

Statements or predictions that can be tested through scientific research, designed to explain phenomena or the relationship between variables.

Population Proportion

The fraction of members in a group that possess a particular characteristic, often expressed as a percentage of the total population.

Confidence Interval

An assortment of values, from sampled evidence, which possibly contains the value of an unknown parameter of the population.

Estimator

An estimator refers to a statistic used to estimate the value of a population parameter based on sample data.