Which of the following is an implicit cost?

a. salaries paid to owners who work for their own firm
b. interest on money borrowed to finance equipment purchases
c. cash payments for raw materials
d. wages paid to hourly employees
e. foregone rent on office space owned and used by the firm

E

Economics

You might also like to view...

A free rider problem is created by private goods

Indicate whether the statement is true or false

Economics

The way that a change in price determines whether or not consumers buy goods

a. elasticity of demand b. substitution effect c. law of demand d. complement e. substitute

Economics