The Difference Between Explicit Costs and Implicit Costs

question 355

Multiple Choice

The difference between explicit costs and implicit costs

• A) is that explicit costs are opportunity costs while implicit costs are not.
• B) is that implicit costs are opportunity costs while explicit costs are not.
• C) is that explicit costs are short-run costs and implicit costs are long-run costs.
• D) is that explicit costs involve resources that are purchased and implicit costs involve resources the firm already owns.

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Definitions:

Durham

A city in North Carolina, known for its research universities and technological companies, or a historic city in Northeast England, famous for its Norman Cathedral.

Irresistible Impulse

A legal defense asserting that a defendant was unable to control their actions due to a mental illness, leading to a criminal act.

American Law Institute (ALI)

A prestigious, independent organization in the United States that produces scholarly work to clarify, modernize, and improve the law.

M'Naghten Rule

A legal principle used to determine whether a defendant was mentally capable of understanding the nature of their actions at the time of their crime, influencing criminal responsibility.