Explicit costs
A) Include only payments to labor.
B) Are the sum of actual monetary payments made for resources used to produce a good.
C) Include the market value of all resources used to produce a good.
D) Are the total value of resources used to produce a good but for which no monetary payment is made. An explicit cost is a payment made for the use of a resource.

Question

Quizplus · Accepted Answer

Explicit costs are actual monetary payments made for resources used to produce a good. This includes payments to labor, rent, materials, and other expenses required to produce a good. It does not include any non-monetary costs, such as opportunity costs or non-market resources.

Explicit Costs