Which of the Following Is an Implicit Cost of Production

question 23

Multiple Choice

Which of the following is an implicit cost of production?

• A)Interest paid on a loan to a bank
• B)Wages paid to labour plus the cost of carrying benefits for workers
• C)The utility bill paid to water, electricity, and natural gas companies
• D)Rent that could have been earned on a building owned and used by the firm

---

Definitions:

Forewarned

Having prior knowledge or warning about a future event, often enabling preparation or prevention.

Empirical

Based on observation or experience rather than theory or pure logic, typically involving data collection and analysis.

Unifying Themes

Central ideas or motifs that bring together various elements of a story, theory, or research project into a cohesive whole.

Researchers

Individuals who conduct detailed study and experiments in various fields to advance knowledge and understanding.