If a Firm Uses Factor Inputs That Are Personally Owned

question 13

Multiple Choice

If a firm uses factor inputs that are personally owned by the firm's owner,then economists refer to the opportunity cost of these inputs as

• A)direct production costs.
• B)accounting costs.
• C)sunk costs.
• D)implicit costs.
• E)inverted costs.

---

Definitions:

Amortized

The gradual reduction of a debt over a period of time through regular payments that cover both principal and interest.

Indefinite Life

A classification for intangible assets that do not have a foreseeable limit to their useful life.

Natural Resources

Natural resources, including minerals, forests, water, and fertile land, are materials available in the environment that can be utilized to generate economic benefits.

Mineral Nature

Mineral nature refers to the characteristics and properties of minerals, including their composition, structure, and the processes by which they are formed.