Which of the Following Is an Implicit Cost to a Firm

question 119

Multiple Choice

Which of the following is an implicit cost to a firm that produces a good or service?

• A) Labor costs
• B) Costs of operating production machinery
• C) Foregone profits of producing a different good or service
• D) Costs of renting or buying land for a production site

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Definitions:

Federal Bureaucracy

The collection of government agencies and departments that carry out policies and administer public programs at the national level.

Appointing Officials

The process of choosing individuals to hold specific positions of authority in organizations, often within the government.

Agency's Budget

An agency's budget refers to the financial plan for a specific governmental agency, outlining expected revenues and expenditures.

Oversight

The process of monitoring and directing activities or operations, often used in the context of government oversight over agencies and departments.