Implicit Costs

question 8

Multiple Choice

Implicit costs

• A) Include only payments to workers and lenders.
• B) Represent actual monetary payments made for resources used to produce a good such as oil.
• C) Are the costs to produce a good or service for which no direct payment is made.
• D) Are the total opportunity costs of resources and inputs used to produce a good.

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Definitions:

Sub-Contracting Levels

The degree to which a primary contractor delegates or outsources portions of a project or job to secondary contractors.

Intermediate-Range Plans

Planning activities that cover a time frame from 3 months to 1 year, focusing on allocations of resources and objectives in the medium term.

Perishable Inventory

Items in inventory that have a limited shelf life and therefore require more dynamic and sensitive handling, management, and forecasting strategies to minimize losses due to spoilage.

Disaggregation

The process of breaking down a complex system or data set into smaller, more manageable parts.