Economic cost can best be defined as:

A) any contractual obligation that results in a flow of money expenditures from an enterprise to resource suppliers.
B) any contractual obligation to labor or material suppliers.
C) a payment that must be made to obtain and retain the services of a resource.
D) all costs exclusive of payments to fixed factors of production.

Economic Cost

A payment that must be made to obtain and retain the services of a resource; the income a firm must provide to a resource supplier to attract the resource away from an alternative use; equal to the quantity of other products that cannot be produced when resources are instead used to make a particular product.

Contractual Obligation

A legal requirement that a party must adhere to as stipulated in a contract, enforceable by law.

Money Expenditures

The total amount of money spent by individuals, firms, or governments on goods and services within a specific period.