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 interest on money taken from bank accounts to buy equipment
E
Economics
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When the marginal product is increasing as the quantity increases, then as the quantity increases, the
A) average product is decreasing. B) marginal cost is decreasing. C) total cost is decreasing. D) total product is decreasing. E) fixed cost is increasing.
Economics
If aggregate expenditure is less than GDP, inventories will
a. grow and prices will fall b. grow and GDP will rise c. grow and GDP will fall d. shrink and GDP will rise e. shrink and GDP will fall
Economics