Which of the Following Would Be Considered an Implicit Cost

question 193

Multiple Choice

Which of the following would be considered an implicit cost of operating a business?

• A)advertising expenses
• B)wages paid to workers
• C)a normal rate of return for investors
• D)any explicit cost

---

Definitions:

Utility-Maximizing

The process of adjusting consumption of goods and services to achieve the highest possible level of satisfaction or utility.

Satisfaction

Describes the feeling of fulfillment or pleasure that comes from acquiring or consuming a product or service.

Stock Market Crash

A sudden and significant decline in the stock market prices, leading to a loss of paper wealth and often preceding economic downturns.

Consumption Expenditures

The total amount spent by consumers on goods and services for personal use.