The implicit cost of capital is:

a. the expense associated with leasing machines.
b. the expense associated with buying machines.
c. the opportunity cost of capital used by a business
d. irrelevant for determining economic profit.

c. the opportunity cost of capital used by a business

Economics

You might also like to view...

The short-run equilibrium of the firm under monopolistic competition has excess capacity

a. True b. False Indicate whether the statement is true or false

Economics

If the price level falls, what will happen to the aggregate supply curve?

a. It will shift outward. b. It will shift inward. c. Nothing. d. It will get steeper. e. It will get flatter.

Economics