Which of the Following Are Implicit Costs for a Typical

question 7

Multiple Choice

Which of the following are implicit costs for a typical firm?

• A)opportunity costs of capital owned and used by the firm
• B)the cost of labor hired by the firm
• C)utilities cost
• D)a business licensing fee

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Definitions:

Consumer Price Index

An index measuring the change in the price level of a basket of consumer goods and services purchased by households.

Basket

A collection of goods, services, or financial instruments grouped together for the purpose of analysis, comparison, or investment.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.

West Region

A term that could refer to the western part of a country, area, or specified region, often defined by geographic, administrative, or socioeconomic criteria.