Implicit Costs Are

question 379

Multiple Choice

Implicit costs are

• A) the costs of using factors that a producer hires or rents.
• B) the opportunity costs of using factors that a producer does not buy or hire but already owns.
• C) costs that are taken into consideration by accountants.
• D) costs that are variable in the short run and fixed in the long run.

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Definitions:

Frustration

A legal doctrine freeing both parties from their contractual obligations if an unexpected event renders the contract impossible to fulfill.

Contract Law

The body of law that governs the formation, performance, and enforcement of agreements between parties.

Statute

A written law passed by a legislative body.

Equitable Remedies

Court-imposed solutions based on fairness to resolve a dispute, including injunctions and specific performance.