If a Firm Has Total Costs of $535,000 and Its

question 84

Multiple Choice

If a firm has total costs of $535,000 and its implicit costs are $165,000,how much are its explicit costs?

• A) $3,242
• B) $120,000
• C) $370,000
• D) $700,000
• E) $308

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Definitions:

Complementary

Pertains to goods or services that are often used together, where an increase in demand for one leads to an increase in demand for the other.

Fixed Proportions

A production scenario where inputs must be used in constant ratios, lacking flexibility in substitution or adjustment.

Input

Factors including workforce, materials, and financial assets employed in the process of producing goods and services.

Resource Demand

The desire and ability of businesses or individuals to acquire economic resources or inputs for the production of goods and services.