Economic cost can best be defined as:

A. any contractual obligation that results in a flow of money expenditures from an enterprise to resource suppliers.

B. any contractual obligation to labor or material suppliers.

C. payments that must be received by resource owners to insure the resources' continued supply.

D. all costs exclusive of payments to fixed factors of production.

Question

Russell Warner

Business

17 May, 13:57

Economic cost can best be defined as:

A. any contractual obligation that results in a flow of money expenditures from an enterprise to resource suppliers.

B. any contractual obligation to labor or material suppliers.

C. payments that must be received by resource owners to insure the resources' continued supply.

D. all costs exclusive of payments to fixed factors of production.

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Answers (1)

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Bolton · Answer 1

C. payments that must be received by resource owners to insure the resources' continued supply.

Explanation:

Economic cost: It is the cost that include all losses incurred for producing one type of product instead of other product or taking only one course of action at a time. While computing economic cost, it include opportunity cost as well, in terms of money, time, and resources unlike accounting cost, which only include cost in terms of money.