An Example of an Explicit Cost of Production Would Be

question 99

Multiple Choice

An example of an explicit cost of production would be:

• A) having to give up wages to become an entrepreneur
• B) the cost of glass for a lens manufacturer
• C) an entrepreneur using their own savings for finance and giving up on the interest payments they were previously getting
• D) none of the above

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Definitions:

Formal Concepts

Abstract ideas or categories defined by a set of rules or characteristics that objects or individuals must possess to be included in the category.

Prototypes

A cognitive representation of a typical member of a category, used to enhance memory and identification by providing examples that epitomize common features within that category.

Representativeness Heuristic

A thinking strategy based on how closely a new object or situation is judged to resemble or match an existing prototype of that object or situation.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.