The Explicit Cost of Production Equals

question 19

Multiple Choice

The explicit cost of production equals:

• A)opportunity cost minus sunk cost.
• B)implicit cost minus sunk cost.
• C)economic cost minus opportunity cost.
• D)opportunity cost minus implicit cost.

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Definitions:

Obligor

An obligor is an individual or entity legally obliged to provide a benefit or payment to another under the terms of a contract.

Assignment

The transfer of rights, property, or obligations from one party to another, often seen in contractual and legal contexts.

Delegation

The act of assigning responsibility or authority from one person or entity to another to carry out specific activities or tasks.

Third-Party Beneficiary

A person who, although not a party to a contract, stands to benefit from the contract's execution or performance.