An Explicit Cost Is Defined as

question 297

Multiple Choice

An explicit cost is defined as

• A)a cost that does not change as output changes.
• B)a nonmonetary opportunity cost.
• C)a cost that involves spending money.
• D)a nonmonetary accounting cost.

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Definitions:

Consumer Goods

Products that are purchased for consumption by the average consumer.

Production Possibilities Curve

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are used efficiently.

Available Resources

The tangible and intangible assets that can be used or mobilized to achieve specific objectives or to produce goods and services.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced with a fixed amount of resources.