A Firm Pays $50,000 for a Machine That Is Used

question 171

Multiple Choice

A firm pays $50,000 for a machine that is used in production for one year,after which it is sold for $40,000 to another firm.The $10,000 difference is

• A) an explicit cost of production.
• B) economic depreciation, an implicit cost of production.
• C) normal profit.
• D) not counted as an economic cost of production.
• E) not an opportunity cost because it is not actually paid.

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Definitions:

Automatic Unconscious Thinking

Mental processes that occur without conscious awareness or effort, often guiding behaviors and decisions with minimal awareness.

Concrete Operations

A stage in cognitive development where children gain the ability to think logically about concrete events and understand the concepts of conservation and reversibility.

Physically Mature

The state at which an individual has reached full biological growth and development.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.