A Recombination of Things That Are Known into Something Different

question 25

Multiple Choice

A recombination of things that are known into something different is called

• A) culture change.
• B) innovation.
• C) social integration.
• D) diffusion.

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Definitions:

Accounting Profits

The net earnings of a company calculated according to generally accepted accounting principles, taking into account all explicit costs but not implicit costs.

Implicit Cost

Costs that represent the loss of potential gain from using assets in an alternative option rather than in their current use.

Implicit Costs

The opportunity costs of resources that are owned by the firm and used in production, not involving direct payment of money but affecting the firm's profitability.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.