The difference between explicit costs and implicit costs
A) is that explicit costs are opportunity costs while implicit costs are not.
B) is that implicit costs are opportunity costs while explicit costs are not.
C) is that explicit costs are short-run costs and implicit costs are long-run costs.
D) is that explicit costs involve resources that are purchased and implicit costs involve resources the firm already owns.
D
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Which one of the following statements is false?
a. Bequest value is the value of environmental services to future generations b. Willingness-to-pay tends to be smaller than willingness-to-accept for the same service c. The production function approach to valuation considers the cost of constructing facilities to provide environmental services d. Contingent valuation can be used to estimate existence values e. The value of just knowing a wild species exists is called indirect use value
A customer at an auction who obtains an antique chair by outbidding several other prospective purchasers
A) may be paying more than the opportunity cost of obtaining the chair. B) pays a price other than opportunity cost. C) pays more than its real cost of his bid exceeds the original cost of the chair plus the cost of running the auction. D) pays the opportunity cost of the last disappointed bidder.