Which of the Following Is an Implicit Cost to a Firm

question 119

Multiple Choice

Which of the following is an implicit cost to a firm that produces a good or service?

• A) Labor costs
• B) Costs of operating production machinery
• C) Foregone profits of producing a different good or service
• D) Costs of renting or buying land for a production site

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Definitions:

Capital Account Balance

This term refers to the total amount of funds contributed by investors or owners plus retained earnings in a company's or individual's financial account.

Ownership Interest

An individual's or entity's legal rights and claims to an asset or property, typically reflecting the extent of ownership and stake.

Partnership Capital

The total amount of assets or equity contributed by all partners in a partnership.

Capital Balances

Capital balances reflect the amount of capital that owners or shareholders have invested in a company, encompassing both contributed capital and retained earnings.