The Clients of Prostitutes Are Often Called

question 62

Multiple Choice

The clients of prostitutes are often called

• A)pimps.
• B)gigolos.
• C)johns.
• D)hardies.

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Definitions:

Explicit Costs

These are direct monetary payments a firm makes to purchase inputs for its production, such as wages, rent, and materials.

Implicit Costs

The opportunity costs of using resources already owned by the firm for production, as opposed to external spending.

Economic Profit

The difference between revenue generated from output and the opportunity costs of inputs used, considering both explicit and implicit costs.

Accounting Profit

The profit of a company after all expenses have been deducted from revenues, but before deducting income taxes.