Interest is considered a(n)A) explicit cost when the firm pays a bank to borrow money.B) implicit cost when the firm owner uses his or her own funds to buy capital.C)return to entrepreneurship if the firm owner uses her own funds to buyсapital.D) form of depreciation if the cost of borrowing increases.Both answers explicit cost when the firm pays a bank to borrow money andE)implicit cost when the firm owner uses his or her own funds to buy capitalare true.

"Explicit costs is a out-of-the-pocket cost which is actually made by an individual/firm/business."…

Interest is considered a(n) A) explicit cost when the firm pays a bank to borrow money. B) implicit cost when the firm owner uses his or her own funds to buy capital. C) return to entrepreneurship if the firm owner uses her own funds to buy capital. D) form of depreciation if the cost of borrowing increases. Both answers explicit cost when the firm pays a bank to borrow money and E) implicit cost when the firm owner uses his or her own funds to buy capital are true.

Interest is considered a(n) A) explicit cost when the firm pays a bank to borrow money. B) implicit cost when the firm owner uses his or her own funds to buy capital. C) return to entrepreneurship if the firm owner uses her own funds to buy capital. D) form of depreciation if the cost of borrowing increases. Both answers explicit cost when the firm pays a bank to borrow money and E) implicit cost when the firm owner uses his or her own funds to buy capital are true.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter31: Capital Markets

Section: Chapter Questions

Problem 5E

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