All of the following are examples of explicit cost a firm might incur except
A) the out-of-pocket expense to hire employees.
B) taxes owed to the state government.
C) the rental value of the warehouse space the company owns and uses for itself.
D) the revenue a firm generates in using its resources.
Answer: C
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If the Fed raises the interest rate, this will ________ inflation and ________ real GDP in the short run
A) reduce; raise B) increase; lower C) increase; raise D) reduce; lower
A profit maximizing monopoly's price is
A) the same as the price that would prevail if the industry was perfectly competitive. B) less than the price that would prevail if the industry was perfectly competitive. C) greater than the price that would prevail if the industry was perfectly competitive. D) not consistently related to price that would prevail if the market was perfectly competitive.