An Example of an Implicit Cost Is

question 22

Multiple Choice

An example of an implicit cost is:

• A)interest paid on a bank loan used to purchase equipment.
• B)wages paid to a family member who works at the firm.
• C)the value of a spare bedroom turned into a home office.
• D)operating costs of a company-owned car.

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Definitions:

Acid Deposition

The deposition of acidic components in rain, snow, or dust on the surface of the Earth, often resulting from industrial emissions.

Nitrogen Oxides

Gaseous compounds of nitrogen and oxygen, such as NO and NO2, that contribute to air pollution and can have harmful effects on human health and the environment.

Endemic Species

A species found only in the region where it evolved.