Which of the Following Are Implicit Costs for a Typical

question 245

Multiple Choice

Which of the following are implicit costs for a typical firm?

• A)Opportunity costs of capital owned and used by the firm
• B)The cost of labour hired by the firm
• C)Utilities cost
• D)A business licensing fee

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Definitions:

Realized Gain

The profit made from selling an asset at a higher price than its purchase cost.

Fair Values

the estimated market value of an asset or liability, based on current prices in an open and competitive market.

Temporary Investments

Investments in stocks, bonds, or other securities that a company intends to sell within a short period, typically one year.

Excess Cash

The amount of cash a company possesses that exceeds the minimum level needed to maintain its operations and investment plans.