The Opportunity Costs Associated with the Use of Resources Owned

question 204

Multiple Choice

The opportunity costs associated with the use of resources owned by a firm are usually

• A) externalities.
• B) implicit costs.
• C) explicit costs.
• D) sunk costs.

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Definitions:

Economically Desirable

Attributes or actions that are beneficial from an economic standpoint, promoting efficiency, growth, or productivity.

Producer Surplus

The difference between the amount producers are willing to supply a good for and the actual amount they receive by selling it.

Market Price

The current price at which a goods or service can be bought or sold in a particular market.

Consumer Surplus

The gap between what consumers are prepared and capable of paying for a product or service and what they end up spending.