Which of the following constitutes an implicit cost to the Johnston Manufacturing Company?
A. Payments of wages to its office workers.
B. Rent paid for the use of equipment owned by the Schultz Machinery Company.
C. Use of savings to pay operating expenses instead of generating interest income.
D. Economic profits resulting from current production.
Answer: C
You might also like to view...
The share of the personal income tax paid by the bottom half of earners
a. rose to an all-time high in 2010. b. was substantially higher in 2010 than during the 1960s and 1970s. c. was substantially lower in 2010 than during the 1960s and 1970s. d. has been relatively constant during the last four decades.
“Circuit breaker” rules halt trading when the Dow declines below its previous day’s closing value by a percentage amount for
A. one hour. B. two hours. C. the remainder of the trading day. D. All three of these periods.