Which one of the following statements is an example of “explicit cost”?
A. The wages a proprietor could have made by working as an employee of a large firm.
B. The income that could have been earned in alternative uses by the resources owned by the firm.
C. The payment of wages by the firm.
D. The normal profit earned by a firm.
Answer:C
Which one of the following statements is an example of “explicit cost”?
A. The wages a proprietor could have made by working as an employee of a large firm. B. The income that could have been earned in alternative uses by the resources owned by the firm. C. The payment of wages by the firm. D. The normal profit earned by a firm.