Question

Nominal cost is also called ___________.

• A. alternative cost
• B. economic cost
• C. expenses of production
• D. opportunity cost

Answer 1

The correct option is C expenses of production

Nominal costs are the accounting costs incurred by the producer. These are expenses that are paid out to the factors of production employed by the firm such as rent on land used and wages to labor employed. Thus nominal costs are called expenses of production.