Asked by
Jasmine Rodriguez
on Dec 04, 2024
Verified
Suppose Eastland College does not have a summer program and could rent out the campus to various summer sports camps for $100,000.The potential revenue of the summer camps represents a(n) :
A) implicit cost of capital.
B) explicit cost.
C) total cost.
D) sunk cost.
Implicit Cost
The opportunity costs that are not directly paid or incurred but represent the loss of alternative benefits when resources are used in a particular way.
Capital
A resource, such as equipment or buildings, used to produce goods and services.
- Acquire knowledge about the notion of opportunity cost and how it shapes economic decision processes.
- Fathom the implications of implicit costs on the profitability in economics.
Verified Answer
DL
Learning Objectives
- Acquire knowledge about the notion of opportunity cost and how it shapes economic decision processes.
- Fathom the implications of implicit costs on the profitability in economics.