Which of the Following Is an Implicit Cost of Production

question 267

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 labor 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

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Definitions:

Partnership Business

A type of business structure in which two or more individuals share ownership, profits, liabilities, and responsibilities.

Compete

To engage in an effort to win or achieve something, such as a market or a contest, often against others.

Consent

Agreement, approval, or permission as to some act or purpose, given voluntarily by a competent individual.

Capital Contribution

The act of providing financial assets, such as money or property, to a partnership or company by its owners or members.