The monitory income a firm sacrifices when it uses a resource it rosins rather than supplying the resource in the market ?
Correct answer: A. Implicit cost
- A. Implicit cost
- B. Explicit cost
- C. Economic cost
- D. Nominal cost
Explanation
Income sacrificed when a firm uses a resource it owns instead of renting or selling it is an implicit cost, because no direct cash payment is made. Explicit costs involve actual monetary payments to outside resource owners.
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Practise Agricultural Economics and Extension
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