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:

International Trade

The exchange of goods and services across international borders, influenced by comparative advantages among countries.

Specialization

The process of concentrating on and becoming expert in a particular subject or skill, often leading to increased efficiency and productivity in economic activities.

GDP

Short for Gross Domestic Product, it measures the total economic output of a country, representing the sum of all goods and services produced over a specific time period.

Net Exports

The difference between a country's total value of exports and total value of imports.