Economic cost can best be defined as

Economic cost can best be defined as



  1. the opportunity cost of using a resource already owned by the firm.
  2. the income the firm must provide to resource suppliers to attract resources from alternative uses.
  3. any contractual obligation that results in a flow of money expenditures from an enterprise to resource suppliers.
  4. those payments for resources that involve an obvious cash transaction.



Answer: the income the firm must provide to resource suppliers to attract resources from alternative uses.


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