Costs That Have Not Yet Been Incurred and That May

question 36

Multiple Choice

Costs that have not yet been incurred and that may vary among different courses of action are called:

• A)Opportunity costs.
• B)Out-of-pocket costs.
• C)Joint costs.
• D)Sunk costs.

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Definitions:

Industry Size

A measure of the total production or the total number of participants in a particular industry or market.

Short-Run Losses

Temporary financial deficits that a firm may face due to operating costs exceeding total revenue in the short term.

Zero Economic Profit

A situation where a firm's total revenue is exactly equal to its total costs, including both explicit and implicit costs.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing surplus remaining after all costs are covered.