Implicit and Explicit Costs Are Different in That

question 10

Multiple Choice

Implicit and explicit costs are different in that:

• A) explicit costs are relevant only in the short run.
• B) implicit costs are relevant only in the short run.
• C) the latter refer to nonexpenditure costs and the former to out-of-pocket costs.
• D) the former refer to nonexpenditure costs and the latter to out-of-pocket costs.

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Definitions:

Articles of Incorporation

Legal document filed with a governmental entity to legally establish a corporation.

Incorporator

The person or entity that files the incorporation papers with the state to legally form a corporation.

Domestic Corporation

A corporation in the state in which it is incorporated.

Revised Model Business Corporation Act

An updated framework intended to standardize and guide the law governing corporations in the United States.