Which of the Following Are Correct Statements About Implicit and Explicit

question 79

Multiple Choice

Which of the following are correct statements about implicit and explicit costs?
i.Normal profit is an implicit cost.
ii.Economic depreciation is an explicit cost.
iii.Wages are an explicit cost.

• A) ii and iii
• B) i and iii
• C) iii only
• D) i, ii, and iii
• E) i only

---

Definitions:

Create

To bring something into existence; to generate or produce an idea, product, or solution.

Razor-And-Razor-Blade

A business model where a company sells a durable product at a low price (razor) and then sells consumable products that are needed to use the initial product (razor blades) at a higher margin.

Printer-And-Ink

A common business model in the printing industry where printers are sold at a low cost and the recurring revenue is generated through the sales of ink cartridges.

Ubiquitous

Present, appearing, or found everywhere; often used to describe technology or phenomena that are widespread and common in daily life.