When an economist uses the term "cost" referring to a firm, the economist refers to the price of the good to the consumer. A. explicit cost of producing a good or service but not the implicit cost of producing a good or service. B. implicit cost of producing a good or service but not the explicit cost of producing a good or service. C. opportunity cost of producing a good or service, which includes both implicit and explicit cost.

Question

Ramon Hampton

Business

20 July, 16:50

When an economist uses the term "cost" referring to a firm, the economist refers to the price of the good to the consumer. A. explicit cost of producing a good or service but not the implicit cost of producing a good or service. B. implicit cost of producing a good or service but not the explicit cost of producing a good or service. C. opportunity cost of producing a good or service, which includes both implicit and explicit cost.

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Cristopher Barrett · Answer 1

C.

Explanation:

Based on the information provided within the question it can be said that the actual meaning of using this term when referring to a firm is the opportunity cost of producing a good or service, which includes both implicit and explicit cost. Meaning what the firm is giving up in order to produce that good or service which can be money, assets, or other opportunities which could be chosen instead.