Explicit Costs

question 132

Multiple Choice

Explicit costs

• A) require an outlay of money by the firm.
• B) include all of the firm's opportunity costs.
• C) include income that is forgone by the firm's owners.
• D) Both b and c are correct.

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Definitions:

Presuppositions

Implicit assumptions or beliefs that are taken for granted in communication or reasoning.

Innate Ideas

Ideas that we are born with, which may include tendencies to think in certain ways that are hardwired into our minds.

Empirical Ideas

Concepts or thoughts derived from or verified by observation, experience, or experiment as opposed to theory or pure logic.

Indubitable

Not susceptible to being doubted.