An Example of an Implicit Cost of Production Is

question 133

Multiple Choice

An example of an implicit cost of production is:

• A) the cost of leather used in manufacturing furniture.
• B) the opportunity cost of space in your home that is used for a home office.
• C) the wages paid to high school students that work in a fast-food restaurant.
• D) none of the above.

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Definitions:

Corporate Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.

Taxable

Pertaining to income, transactions, or assets that are subject to tax by governmental authorities.

Stock Split

A corporation’s decision to increase the number of its outstanding shares, thus reducing the share price.

Bookkeeping Services

Professional service that entails the recording of a company's financial transactions, ensuring accurate and up-to-date financial records.