Which of the Following Would Be an Example of an Implicit

question 294

Multiple Choice

Which of the following would be an example of an implicit cost?

• A) (i)only
• B) (ii)only
• C) (ii)and (iii)only
• D) (i)and (iii)only

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Definitions:

State Supreme Court

The highest judicial court in a U.S. state, responsible for interpreting state laws and constitutions.

Illegal

Actions or activities that are prohibited by law and subject to sanctions.

Option Contract

A legal agreement in which a buyer has the right but not the obligation to buy or sell an asset at a pre-agreed price within a specified period.

Promissory Estoppel

A legal doctrine prohibiting someone from revoking a guarantee given to another individual if the latter has sensibly counted on such guarantee to their disadvantage.