When an Economist Uses the Term "Cost" Referring to a Firm,the

question 28

Multiple Choice

When an economist uses the term "cost" referring to a firm,the economist refers to the

• A) price of the good to the consumer.
• B) explicit cost of producing a good or service but not the implicit cost of producing a good or service.
• C) implicit cost of producing a good or service but not the explicit cost of producing a good or service.
• D) opportunity cost of producing a good or service, which includes both implicit and explicit cost.
• E) cost that can be actually verified and measured.

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Definitions:

Order

A request made by a customer for a specific product or service, initiating a transaction between buyer and seller.

Reseller Objection

Resistance or concerns expressed by a reseller or distributor, often related to product price, features, market demand, or terms of sales agreements.

Loyalty

The quality of being faithful or committed to a brand, company, or product, often resulting from customer satisfaction.

Dodge Technique

A strategy used in discussions or negotiations to avoid directly answering a question or addressing a challenging issue.