Answer to Question #45415 in Microeconomics for Dion Lewis

Question

Which of the following is most likely to be an implicit cost for Company X?

Select one:
a. foregone rent from the building owned and used by Company X.
b. transportation costs paid to a nearby trucking firm.
c. rental payments on IBM equipment.
d. payments for raw materials purchased from Company Y.

Answer 1

a. foregone rent from the building owned and used by Company X.