Economic costs of production Multiple Choiceconsist only of explicit costs.include opportunity costs.never include monetary payments.only include monetary payments.
Question
Economic costs of production Multiple Choiceconsist only of explicit costs.include opportunity costs.never include monetary payments.only include monetary payments.
Solution
The correct answer is: include opportunity costs.
Here's why: Economic costs of production include both explicit costs (direct out-of-pocket expenses for resources used in production) and implicit costs (opportunity costs of using resources in one way rather than in their next best alternative use). Therefore, economic costs of production include opportunity costs.
Similar Questions
An opportunity cost:Multiple ChoiceIs an unavoidable cost because it remains the same regardless of the alternative chosen.Requires a future outlay of cash.Results from past managerial decisions.Is the potential benefit lost by taking a specific action instead of alternative actions.Is irrelevant in decision making because it occurred in the past.
Multiple Choice QuestionMonopolistically competitive firms are not productively efficient because output is less than society's optimal level because a producer's Blank______.Multiple choice question.average variable cost per unit is not at its optimal possible costaverage fixed cost per unit is not at its lowest possible costmarginal revenue per unit is not at its optimal possible priceaverage total cost per unit is not at its lowest possible cost
Choice is necessitated by _____.*1 pointA. demand and supplyB. cost of productionC. production possibility curveD. scarcity of resources
An opportunity cost is*1 pointA cost common to all alternatives in question and not clearly or practically allocable to any of the alternativesThe profit foregone by selecting one alternative instead of anotherA cost that may be shifted to the future with little or no effect on current operationsThe difference in total costs that results from selecting one alternative instead of another
Multiple Choice QuestionThe purchase price for each of the inputs required to produce a good or service is referred to in economics as Blank______.Multiple choice question.materials resource planningresource pricingsupply chain managementcost accounting
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.