All of the Following Are Examples of Explicit Cost a Firm

question 227

Multiple Choice

All of the following are examples of explicit cost a firm might incur except

• A)the out-of-pocket expense to hire employees.
• B)taxes owed to the state government.
• C)the rental value of the warehouse space the company owns and uses for itself.
• D)the revenue a firm generates in using its resources.

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Definitions:

Price Controls

Government-imposed limitations on the prices that can be charged for goods and services in a market.

Energy Products

Energy products refer to commodities used for generating power, such as petroleum, natural gas, coal, and renewable energy sources.

Consumption

The process through which goods and services are used up or utilized.

Short Run

In economics, a period during which at least one input, such as plant size, is fixed and cannot be changed.