Private costs include all of the following EXCEPT:
A) explicit costs
B) implicit costs
C) fixed costs
D) variable costs
E) social costs

Question

Quizplus · Accepted Answer

Private costs refer to the costs incurred by a firm or individual directly involved in a transaction, including explicit costs (out-of-pocket expenses), implicit costs (opportunity costs), fixed costs (costs that do not change with the level of output), and variable costs (costs that change with the level of output). Social costs, however, encompass both private costs and external costs (costs imposed on third parties), and thus are not considered a type of private cost.

Private Costs Include All of the Following EXCEPT