Which of the Following Is an Example of an Implicit

question 259

Multiple Choice

Which of the following is an example of an implicit cost?

• A) wages paid to employees
• B) interest paid to a bank on a building loan
• C) the cost of using capital an owner donates to the business
• D) dollars paid to a supplier for materials used in production
• E) liability insurance payments made only once a year

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Definitions:

19th Century

Refers to the years from 1801 to 1900, a period marked by significant industrial, social, and political changes worldwide.

Earliest Antitrust Act

Legislation aimed at promoting competition and preventing monopolies, often referring to the Sherman Antitrust Act of 1890 in the United States.

Sherman Act

A landmark federal statute in the United States antitrust law passed in 1890 which prohibits monopolistic practices and promotes competition.

Horizontal Merger

A corporate strategy where two or more companies that produce similar products or services merge.