The monetary payment a firm must make to an outsider to obtain a resource____________________?
Correct answer: B. Explicit cost
- A. Implicit cost
- B. Explicit cost
- C. Net cost
- D. Total cost
Explanation
An explicit cost involves an actual monetary payment to an outside resource supplier, such as wages, rent or purchased inputs. An implicit cost represents the value of resources owned and supplied by the firm itself.
Last updated
Practise Agricultural Economics and Extension
190 free Agricultural Economics and Extension MCQs from Agriculture, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Agriculture questions like this
Agriculture is on this paper prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for it.
Related questions
A bank which lends to developing nations to help them increase their capital stock and this achieve economic growth ?
A benefit or cost from production or consumption accruing without compensation to non buyers and non/sellers of the product is called_________________?
A. Cetris peribus stands for__________________?
A closed economy that attempts to be completely self-reliant ?
A commercial bank authorized by state govt. to engage in business of banking ?