Which of the following is an example of an implicit cost?
A) Dividends paid out to stockholders
B) The uncompensated services of the spouse of a firm's owner
C) Payments made to workers who are unproductive
D) All of the above are implicit costs.

Question

Quizplus · Accepted Answer

Implicit costs are those that do not involve a direct payment of money but represent the opportunity costs of using resources owned by the firm for its own use rather than earning income from these resources elsewhere. The uncompensated services of the spouse of a firm's owner (B) is an example of an implicit cost because it represents the value of services for which the firm does not make a direct payment.

Which of the Following Is an Example of an Implicit